MicroStrategy Sees Continued Sell-Off After Joining Nasdaq-100

MicroStrategy’s Market Momentum Falters After Nasdaq-100 Inclusion Amid Profit-Taking and Market Skepticism

MicroStrategy’s meteoric rise hit a significant roadblock as shares tumbled over 8% on Monday, settling just above $300. This drop marks a staggering 30% decline since the announcement of its inclusion in the Nasdaq-100 and nearly 50% from its record high in late November.

The company, widely recognized as a pioneer in corporate Bitcoin adoption, had seen its stock soar nearly eightfold in 2024 and more than fiftyfold since beginning its Bitcoin accumulation strategy in August 2020. Yet, the recent reversal suggests that investors are reassessing the sustainability of this parabolic rise.

Executive Chairman Michael Saylor has been a constant advocate for Bitcoin, frequently appearing across financial media platforms to promote both the cryptocurrency and MicroStrategy’s strategy. However, recent messaging—marked by heightened self-assuredness and frequent social media teasers about upcoming Bitcoin purchases—may have signaled a short-term market peak.

Adding to investor unease is the emergence of copycat companies adopting MicroStrategy’s Bitcoin treasury strategy. Firms like Semler Scientific and Metaplanet have followed suit, raising capital to acquire Bitcoin and earning praise from Saylor himself.

Market analysts point to George Soros’ theory of Reflexivity, which suggests that market perception can create self-reinforcing price cycles. In MicroStrategy’s case, rising share prices allowed the company to raise cheap capital for further Bitcoin purchases, fueling even higher valuations. However, Soros’ theory also warns that such cycles inevitably break.

From its peak of $543 in November to its current $300 level, MicroStrategy’s stock has undergone a severe 45% correction. Despite this pullback, year-to-date performance remains impressive, with shares still up over 400%.

Bulls argue that this correction mirrors past drawdowns seen during MicroStrategy’s historic run, each of which eventually resolved with further upside. Bears, however, caution that breaking such a powerful reflexive cycle may take more time and could result in deeper declines.

For now, MicroStrategy remains a high-stakes bet on Bitcoin’s continued success and the resilience of its unique corporate strategy. Investors will be watching closely to see whether the company can reignite its virtuous cycle or if the current downturn signals a more prolonged period of weakness.