MicroStrategy Stock Drops to $185 Amid Bitcoin Pullback

MicroStrategy stock (MSTR) has fallen to $185 , reflecting a sharp decline alongside Bitcoin’s price drop to $91,700 from highs above $110,000. The company’s shares, which have historically tracked Bitcoin closely, are now trading below the value of its substantial crypto holdings, highlighting the volatility inherent in its treasury strategy.

Holdings and Q3 Performance: $2.8 Billion Bitcoin Gain

MicroStrategy holds 649,870 BTC, acquired at an average price of $66,385 per coin, with a total cost basis of approximately $43.2 billion. At current prices, this stash is valued at roughly $59.6 billion — a 38% unrealized gain. The firm’s Q3 2025 earnings reported $2.8 billion in net income largely driven by Bitcoin appreciation, alongside a 26% “BTC yield” metric that factors in its holdings growth and stock performance.

The company added 116,555 BTC in 2025 through debt and equity raises, but the stock’s correlation with Bitcoin’s movements remains a double-edged sword. As BTC pulled back 17% from recent highs, MSTR shares followed, dropping 15% in the past week.

• BTC Holdings: 649,870 (cost $43.2B; value $59.6B).
• Q3 Net Income: $2.8B from Bitcoin gains.
• 2025 Additions: 116,555 BTC.

Criticisms of ‘BTC Yield’ and Debt Risks

MicroStrategy’s “BTC yield” calculation, which blends holdings appreciation with stock returns, has drawn scrutiny. Critics argue it overstates performance by including unrealized gains and ignores leverage risks from the firm’s $4.3 billion in convertible debt. Annual interest obligations total $689 million, covered by cash flows but vulnerable to prolonged Bitcoin downturns.

On X, bears highlight dilution from share issuances to fund BTC buys, warning that a 50% BTC drop could force sales or equity offerings. Bulls, however, see the pullback as a buying opportunity, with some adding positions at $185, betting on Bitcoin’s historical rebounds.

• Debt Load: $4.3B convertible; $689M annual interest.
• X Sentiment: 55% bearish on dilution; 45% bullish on BTC correlation.
• Critique: ‘BTC yield’ ignores leverage risks.

Market Context: Bitcoin’s 17% Pullback from Highs

Bitcoin’s slide to $91,700 follows a 17% retreat from $110,000+ levels, amid $1.1 billion liquidations and ETF outflows of $2.57 billion in November—the worst since February. MicroStrategy’s stock, up 150% YTD before the dip, now trades at a 68% premium to its Bitcoin NAV, down from 120% peaks.

Analysts like those at Benchmark maintain a Buy rating with a $400 target, citing the treasury’s resilience, but caution on near-term volatility if BTC tests $80,000.

2025 MicroStrategy Stock Prediction: $250-$300 Consensus

MicroStrategy stock prediction for 2025 targets $250-$300, with 35-62% upside from $185. Changelly $220-$250; CoinDCX $280. Bull catalysts: BTC rebound; bear risks: Debt pressure testing $150 support.

In summary, MicroStrategy stock’s drop to $185 amid Bitcoin’s $91,700 pullback tests its treasury strategy, but $2.8B Q3 gains and 26% BTC yield signal $250-$300 2025 resilience.