[Christian Harris]

MicroStrategy (MSTR) shares have experienced a significant decline of 16% in 2025, with the stock falling below $250 for the first time since November 2024.

This downturn coincides with Bitcoin’s price correction, which saw the cryptocurrency drop below $88,000, reaching as low as $87,630 on February 25, 2025.

The company’s Bitcoin-heavy strategy, which involves holding over 499,000 BTC with an average purchase price of $66,350, has made MSTR particularly sensitive to Bitcoin price movements.

As of February 25, 2025, MicroStrategy’s Bitcoin holdings were valued at approximately $43.7 billion, representing a substantial portion of the company’s assets.

Despite the recent downturn, some analysts remain optimistic about MicroStrategy’s prospects.

The company’s ability to raise capital and generate what CEO Michael Saylor calls “Bitcoin yield” continues to attract attention.

This “yield” refers to the increase in Bitcoin holdings per share over time, which MicroStrategy achieved at a rate of 1.69% year-to-date in 2025.

However, the concept of “Bitcoin yield” is not without controversy.

Unlike traditional yields, it doesn’t generate actual returns but rather represents an increase in Bitcoin exposure per share.

This strategy relies on the company’s ability to continue raising capital and acquiring more Bitcoin at favourable prices.

The stock’s future performance is now closely tied to Bitcoin’s next significant price movement.

If Bitcoin recovers and surpasses previous highs, MSTR could see substantial gains. Conversely, a prolonged crypto bear market could put further pressure on the stock.

Investors and traders should closely monitor both MSTR and Bitcoin price actions, as well as any new capital raising activities or Bitcoin acquisitions by MicroStrategy.

The stock’s high correlation with Bitcoin (0.85 over the past 30 days) suggests that MSTR will likely continue to mirror Bitcoin’s volatility in the near term.

(Click to enlarge)

Sources: eToro, MarketScreener

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