MicroStrategy Inc. (MSTR) is facing increased pressure, with the stock closing at $129.09 on Thursday, February 5, 2026. This is mainly due to the decrease in the value of Bitcoin and the fact that the company has significant leverage.
This shows the risks associated with MicroStrategy’s famous strategy of holding large quantities of Bitcoin on a leveraged balance sheet.
The stock is now trading at a price lower than the net value of its Bitcoin holdings. This means that the premium that made its leveraged strategy desirable is no longer there.
The company has over $8.2 billion in convertible debt and over $7.5 billion in preferred stock. If the price of Bitcoin continues to go lower, its debt may become larger than its market capitalization. The company may be forced to sell its assets to stay afloat.
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MicroStrategy Slides Amid Bitcoin Pressure
As for the technical indicators, it appears that there is a confirmed double top formation, and the MSTR stock has already breached the neckline. As stated by Alpha Crypto Signal on February 5, the potential range for the stock could be between $80 and $60. It appears that the downside of the company outweighs the potential support levels.
Additionally, institutional sales have contributed to this decline. In the third quarter of 2025, there was an overall sale of $5.4 billion of MicroStrategy shares by major institutional investors.
The current market situation indicates that there is less buying at the net asset value of the company’s Bitcoin holdings. Therefore, it is likely that selling will continue if Bitcoin is pressured.
Bitcoin and MicroStrategy stock are being closely watched by investors. If the price of Bitcoin faces any further downward pressure, the market capitalization of the company could be reduced faster. Investors need to be aware that trading with leverage on cryptocurrency is risky, especially when the market is volatile.
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