MicroStrategy's stock dropped! A $21B stock offering was announced. Is this a smart move? Find out more on the new move of MicroStrategy!

MicroStrategy, led by Michael Saylor, has transformed into a Bitcoin-backed company, using BTC as its primary treasury reserve asset. The company's stock (MSTR) is heavily correlated with Bitcoin's price movements due to:

Shares of MicroStrategy Inc ( MSTR -10.22%) are falling on Monday. The company's stock lost 12.6% as of 10:50 a.m. ET and was down as much as 13.9% earlier in the day. The drop comes as the S&P 500 lost 2%, and the Nasdaq Composite lost 3.5%.

MicroStrategy's stock has lost 47% since November 2024, falling from $543 to $287.18 as of March 9, 2025. Given MicroStrategy's deep financial and strategic ties to the digital asset, this sharp decline raises serious concerns for Bitcoin (BTC) and the broader crypto market.

With its leveraged bitcoin (BTC-USD) haul, Strategy (MSTR) captures an eye-popping 30% of the year-to-date corporate bond market, leaving investors wondering: what would happen to its massive bitcoin stash if the crypto suffers a bear market?

Bitcoin’s price and shares of Strategy (MSTR), previously MicroStrategy, fell sharply after the U.S. government said that its newly revealed "Strategic Bitcoin Reserve" would only include seized assets,

Bitcoin (CRYPTO:BTC) slumped two weeks ago as the broader AI and tech industry slowed down. Crypto is often seen as a more volatile tech offshoot, and the crypto market’s correlation with the tech sector only increased after Bitcoin ETFs were introduced.