Bitcoin News: MicroStrategy Shares Plummet 55%, Raising Doubts About Bitcoin-Centric Business Model

Recent market movements have cast a shadow over the future of MicroStrategy, now known as Strategy, and its heavy investment in Bitcoin. As the corporate intelligence company`s shares drop dramatically, market analysts are questioning the sustainability of its Bitcoin-centric business plan.

Massive Bitcoin Selloff Ahead? MicroStrategy Shares Drop 55%

MicroStrategy (now Strategy), the corporate intelligence company, is facing operational challenges. From their November top of $475, its shares have dropped more than 55%, raising doubts about their Bitcoin-centric business plan. Given the current volatility of Bitcoin, which has dropped to as low as $86,000 following a 9% loss, market watchers are wondering about the sustainability of Strategy’s approach. The business model of Strategy is essentially based on an ambitious plan that has turned the company from a regular software organization into a Bitcoin powerhouse. Right now, the corporation has bought 499,096 BTC for a total of $43.7 billion. A fresh debt issuance earlier this month of $2 billion has raised the average cost per Bitcoin to $66,350.

U.S. Spot Bitcoin ETFs Experience Record $1B Daily Outflows

Spot Bitcoin exchange-traded funds (ETFs) in the United States saw their largest-ever daily net outflows on Tuesday, totaling $1.01 billion. Out of the 12 spot Bitcoin ETFs, 10 reported net outflows, indicating a significant retreat by investors due to broader market volatility. The Fidelity Wise Origin Bitcoin Fund (FBTC) had the largest withdrawal of $344.65 million, followed by BlackRock’s iShares Bitcoin Trust (IBIT) with $164.3 million in outflows. Other notable losses included $100 million from Valkyrie’s BRRR, $88.3 million from Bitwise’s BITB, and $85 million from Grayscale’s Mini Bitcoin Trust.

Oklahoma Moves Closer to Bitcoin Adoption with Strategic Reserve Bill Approval

Oklahoma has taken a significant step toward Bitcoin adoption with the approval of the “Strategic Bitcoin Reserve Act” (HB 1203) by the House Committee. The bill passed with a decisive vote of 12 in favor and only 2 against and will now move to a full legislative vote. If enacted, the bill would permit up to 10% of the state’s public funds to be invested in Bitcoin or other digital assets with a market capitalization exceeding $500 billion.

Could MicroStrategy Be Forced to Sell Its $43 Billion Bitcoin Stash?

Speculation is swirling over whether MicroStrategy could be forced to liquidate its Bitcoin holdings. The Kobeissi Letter suggests that while such a move is highly unlikely, it`s not entirely off the table. Over the past 24 hours, Bitcoin`s price dropped more than 3%, triggering a Ripple effect that sent MSTR down by 11%. According to Yahoo Finance, the stock closed at $250, marking a 55% decline from its all-time high in November 2024. The analysis elaborated that a forced liquidation of MSTR is not necessarily impossible, but it would need a “mayday” situation to occur.

Bitcoin Price Forecast: BTC is 20% down from its ATH

Bitcoin (BTC) price hovers around $88,800 on Wednesday after reaching a low of $86,050 the previous day. US Bitcoin spot Exchange Traded Funds (ETF) supported BTC`s price correction, recording the highest single-day outflow of $937.90 on Tuesday. A K33 report highlights how Micro Strategy`s latest purchase of BTC was not well-received by the market while it processed a resurgence in concerns over US President Donald Trump’s tariffs.

Bitcoin Enters Re-Accumulation Range After Crash

Bitcoin`s recent price crash surprised the market, causing losses for bullish investors. The cryptocurrency lost its foothold at the $90,000 level, extending the crash across multiple cryptos. Technical analyst Rekt Capital identified this pullback as a downside deviation within a re-accumulation range, hinting at potential market changes. Bitcoin`s break below $90,000 marks its first time trading below this level since November 2024, following months of upward momentum and consolidation between $90,000 and $100,000.