Strategy, East Microstrati, saw that its stock MSTR is more than 5%. Not only this, the ratio of MSTR’s market capitalization and its bitcoin holdings falls down to 1.6 after falling below BTC $ 90,000.
As data On Yahoo Finance, the stock of strategy in pre-market trading is reduced by 5.65%. The strategy on EST is $ 282.76 at around 16:00 pm of today’s stock trading. The plmet was believed to be triggered by the price of bitcoin (BTC) in the stock of strategy, which was reduced on February 25 as $ 87,630.
The decline of bitcoin not only affected the stock value of the strategy, but also its premium ratio. The firm of Michael Sirir has long been forming close ties with bitcoin, as it has been famous for being BTC’s largest corporate holder. The software developer company has more than 2% ownership of BTC’s total supply from the end of 2024. Recently, it bought 20,356 bitcoins, which cost around $ 2 billion at the time of purchase.
Unfortunately, for the firm, Crypto analyst Miles Dutasher said the strategy may have to catch back from its bitcoin shopping spright after the recent price.
Based on the analysis of Deutscher, MSTR’s premium market cap to bitcoin holdings ratio is far from the peak of 3.4 in November, with only 1.6 February to 1.6. This means that the market value of stock is now close to the actual value of its bitcoin holdings, rather than high prices.
“The less this number is, the more difficult it will be to raise more capital for the purchase of BTC for Sayler,” Dutasher said in his recent Post,
As a result of the bitcoin price drop, the company will have a difficult time to issue shares or use its stock, if BTC never rebounds soon then to generate the money required to buy more bitcoins. In addition, investors will not be ready to pay more than the current internal value of bitcoin, thus limiting the capacity of the Sayler to raise capital.
As reported by crypto.news earlier, Bitcoin fell 6.78% on 25 February. Matrixport analysts warned that BTC could experience a deep decline, especially with limiting the demand for dip-cursed with low business activity.
