MicroStrategy Shares Dive 7.43% Amid Crypto Selloff $6.25B Turnover Places 11th

On August 19, 2025, MicroStrategy (MSTR) closed at a 7.43% decline, marking its lowest level since April 22. The stock saw a surge in trading volume, with $6.25 billion in turnover—up 91.1% from the previous day—ranking it 11th in the market. The drop aligned with broader crypto-related stock selloffs as Bitcoin (BTC) dipped below $114,000 and traders braced for Federal Reserve Chair Jerome Powell’s Jackson Hole speech on August 22.

Market participants turned risk-averse amid heightened macroeconomic uncertainty, particularly around inflation and potential tariff impacts. The company’s exposure to BTC—holding 628,791 coins, or 3% of the total supply—amplified its sensitivity to crypto price swings. While MicroStrategy’s disciplined capital-raising through preferred equity offerings (e.g., STRK, STRF) has historically provided liquidity, the recent selloff reflected cautious sentiment ahead of policy clarity.

Analysts highlighted the interplay between crypto valuations and central bank signals. Bitcoin’s year-to-date yield at 25% and projected gains under a $150,000 BTC price target remain key long-term catalysts. However, stretched valuations—MicroStrategy trades at a 2.15x price-to-book ratio, higher than peers—combined with macro volatility, have pressured near-term investor confidence. The Zacks Investment Research model currently assigns a “Sell” rating to the stock, citing overvaluation and bearish technical indicators.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to the present delivered a 10.5% gain. However, the approach faced notable drawdowns, underscoring the risks of high-turnover trading in a volatile market environment.