Bitcoin Plunges To 6-Month Low: Why Strategy (MSTR) Investors Are Feeling the Pain

Strategy Inc (NASDAQ:MSTR) shares are trading higher Tuesday morning, recovering following Monday’s crypto selloff and the worst weekly tech slump since April. The stock, down over 30% in the past month, is being severely impacted by Bitcoin (CRYPTO: BTC) crashing below $90,000 to hit a six-month low.

• MSTR stock is racing ahead of the pack Tuesday. See the full story here.

What To Know: Strategy is now valued almost entirely on the strength of its Bitcoin holdings rather than net income. With the company recently deploying another $835.6 million to acquire 8,178 BTC, its shareholder value is mathematically tethered to the digital asset’s performance.

As a result, when Bitcoin hits a six-month low, MSTR's balance sheet faces immediate perceived devaluation, forcing the stock through major support levels near $200.

Despite Ethereum (CRYPTO: ETH) losing $3,000 and broader crypto routs, Michael Saylor remains defiant, stating the company is “always buying” and remains overcollateralized even if Bitcoin were to crash 80%.

While Fundstrat’s Tom Lee argues MSTR could eventually become a market leader if Bitcoin recovers, the immediate selloff of the underlying asset has accelerated volatility.

Benzinga Edge Rankings: Benzinga Edge data underscores the stock’s technical weakness, assigning MSTR a low Momentum score of 5.82 while flagging negative price trends across short, medium and long-term horizons.

Read Also: Everyone’s Bullish, Cash Is Gone—What Happens If The Fed Doesn’t Cut?

MSTR Price Action: Strategy shares were up 3.62% at $202.49 at the time of publication on Tuesday. The stock is near its 52-week low of $189.53, according to Benzinga Pro data.

How To Buy MSTR Stock

By now you're likely curious about how to participate in the market for Strategy – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Strategy, which is trading at $206.85 as of publishing time, $100 would buy you 0.48 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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