MSTR Shares Implodes as BTC and Investor Sentiment Both Plummet

1 day ago 7

Douglas A. McIntyre

Sat, November 29, 2025 astatine 9:48 AM CST 3 min read

MicroStrategy (MSTR) dropped 40% from October highs arsenic Bitcoin fell from $104,050 to $90,903.
MicroStrategy owes $700M successful yearly preferred banal dividends but CEO Michael Saylor vowed ne'er to merchantability Bitcoin.
Reddit traders turned bearish and questioned whether MSTR tin prolong payouts without raising caller capital.
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Shares of MicroStrategy (NASDAQ: MSTR) are down 40% from October highs, mirroring Bitcoin's diminution from its $104,050 highest connected November 13 to $90,903 today. The illness triggered a melodramatic displacement successful retail sentiment, with Reddit's r/WallStreetBets turning decisively bearish. Technical indicators corroborate the carnage: MSTR's 14-day RSI deed 23.57 connected November 21, the astir oversold speechmaking successful caller history, portion trading measurement spiked to astir 30 cardinal shares that day, triple emblematic levels.

The selloff intensified aft Bitcoin crashed 13.5% successful a azygous league connected November 21, falling from $93,080 to $80,524. MicroStrategy, which holds 640,808 bitcoins arsenic its superior treasury asset, amplified the diminution owed to its 3.37 beta. The company's utmost valuation metrics, including a price-to-sales ratio of 107.2x, near small country for mistake erstwhile Bitcoin faltered.

Retail traders are questioning MicroStrategy's concern model. A viral station connected r/WallStreetBets gained 176 upvotes by calculating what the writer called a "Ponzi-Ratio Curve," arguing that MSTR's preferred banal dividends tin lone beryllium paid by raising wealth from caller investors.

Calculating the Strategy/MSTR Ponzi-Ratio Curve
by
u/JulianHabekost in
wallstreetbets

The station elaborate however MicroStrategy promises astir $700 cardinal successful yearly dividends portion CEO Michael Saylor has vowed ne'er to merchantability Bitcoin. The writer warned: "The infinitesimal they conscionable beryllium connected this heap of bitcoin that doesn't make immoderate dividends portion their money raising stalls is the infinitesimal wherever radical volition recognize that you request to besides beryllium capable to merchantability an plus that you get against."

Sentiment has been consistently bearish crossed the past week, with scores ranging from 12 to 38 connected a 100-point scale. Key concerns driving the negativity:

MSTR's $700 cardinal yearly dividend work with nary gross root beyond caller superior raises
Bitcoin down 18% from peak, eliminating the momentum that justified MSTR's premium valuation
Extreme valuation disconnect: 107x price-to-sales ratio versus 10-20x for emblematic bundle companies