Bitcoin News Today: MicroStrategy stock drops 20% despite Bitcoin hitting $124,420 all-time high

MicroStrategy (MSTR) stock continued its downward spiral on August 14, 2025, even as Bitcoin reached a new all-time high of $124,420 [1]. The company’s shares fell to $375.80, a 20% decline from its year-to-date high of $457 and a 30% drop from its 2024 peak [1]. The stock has entered a bear market, with technical indicators suggesting further downside risk if key support levels are breached [1].

One of the key factors contributing to the stock’s decline is valuation concerns. MicroStrategy holds 628,946 Bitcoin, valued at over $74.78 billion, with an average cost per coin of $73,288, translating to a 62% gain [1]. However, its market capitalization of $107 billion implies a net asset value (NAV) multiple of 1.428, down from 3.31 in November 2024 [1]. This widening gap between the company’s market cap and its Bitcoin holdings has raised concerns about overvaluation [1].

The falling premium is partly due to increased competition in the Bitcoin treasury space, with over 100 companies now adopting a similar strategy to boost stock prices [1]. This trend has reduced the perceived uniqueness of MicroStrategy’s model and weakened its premium in the eyes of investors [1].

Short-sellers have also taken advantage of the stock’s volatility. According to SeekingAlpha, short interest in MSTR has risen to nearly 10%, with high-profile investors like Jim Chanos betting against the stock [1]. Another factor is the ongoing share issuance by MicroStrategy to fund Bitcoin purchases, which has increased its total outstanding shares from 78 million in 2022 to 261 million [1]. While the company argues that the dilution has been justified by a 2,100% rise in share price since its 2022 low, the increased supply has diluted ownership and added downward pressure [1].

Despite the recent drop, some analysts believe MSTR remains undervalued. Yahoo Finance data shows that the average analyst estimate for the stock is $569, a 55% premium to its current price [1]. However, achieving that level would require a significant shift in market sentiment and confidence in MicroStrategy’s long-term strategy.

From a technical perspective, MSTR is approaching a key support level at $358, having failed to break below it since May 28 [1]. A breach of this level could confirm a bearish breakout and push the stock toward $300. On the other hand, a move above $415 would invalidate the bearish outlook and signal a potential recovery [1].

The broader Bitcoin market has also shown signs of turbulence. After reaching $124,457 on August 1, 2025 [1], Bitcoin retreated to around $120,000 amid profit-taking [2]. The release of U.S. Producer Price Index (PPI) data, which showed a 3.3% year-over-year increase, triggered panic selling, with over $538 million in long positions liquidated in an hour [3]. Analyst PlanB noted that Bitcoin’s RSI was approaching overbought territory, suggesting the potential for a short-term correction [8].

Despite these concerns, bullish sentiment remains strong. Polymarket bettors have given Bitcoin a 46% chance of surpassing $130,000 by the end of August [9], while Galaxy Digital founder Mike Novogratz has speculated on a future price of $1 million, though such forecasts are not grounded in current fundamentals [9].

The mixed performance of Bitcoin and related equities underscores the evolving nature of the crypto market. While institutional adoption and macroeconomic expectations continue to drive optimism, the volatility and sharp corrections highlight the risks still present in this maturing asset class [1].

Source:

[1] title: Strategy stock crashing despite Bitcoin price hitting ATH

url: https://crypto.news/strategy-stock-crashing-despite-bitcoin-price-hitting-ath-heres-why/

[2] title: Why Was New Bitcoin ATH So Short-Lived?

url: https://www.fxleaders.com/news/2025/08/14/why-was-new-bitcoin-ath-so-short-lived/

[3] title: Why is the Crypto Market Suddenly Crashing: $538 Million

url: https://coingape.com/trending/why-is-the-crypto-market-suddenly-crashing-538-million-long-liquidates-in-just-an-hour/

[4] title: Why Bitcoin Is Surging? BTC Price Prediction to $200K as

url: https://www.financemagnates.com/trending/why-bitcoin-is-surging-btc-price-prediction-to-200k-as-market-cap-flips-google/

[5] title: What's next for Bitcoin after hitting a new ATH at $124k?

url: https://coinjournal.net/news/whats-next-for-bitcoin-after-hitting-a-new-ath-at-124k-check-forecast/

[6] title: Biotech Stock Plunges on Bitcoin Plans as Ethereum

url: https://decrypt.co/335127/biotech-stock-plunges-bitcoin-plans-ethereum-treasuries-stay-hot

[7] title: Why is the Crypto Market Suddenly Crashing: $538 Million

[8] title: Bitcoin Price to $170000? Is Potential RSI Roadblock in

url: https://u.today/bitcoin-price-to-170000-is-potential-rsi-roadblock-in-view

[9] title: Bitcoin Price to $170000? Is Potential RSI Roadblock in