MicroStrategy's stock price has fallen 68% from its historical high of $543, with multiple instances of the stock price dropping over 50% since August 2020.

A year ago, the software company MicroStrategy, which was the first to invest in Bitcoin as a corporate financial asset, saw its stock price reach an all-time high of (MSTR), while Bitcoin also approached the $100,000 mark for the first time.

However, the world is unpredictable. Now, the stock price of MicroStrategy has fallen 68% from its peak of $543 set a few days after President Trump's election victory, and the price of Bitcoin has also dropped to $83,142, reaching its lowest level since April. On the largest compliant trading platform in the United States, the price of Bitcoin has fallen even more, briefly dropping to $81,385 on Friday. Currently, MicroStrategy's average purchase price is approximately $74,430, which remains a key price point worth monitoring.

Bitcoin has continued to decline since it set a record of $126,000 in early October, further exacerbating the drop in MicroStrategy's stock price. The stock has fallen below key moving averages and technical support levels, marking the second-largest drop since the company adopted its Bitcoin treasury strategy in April 2020.

This crash is similar to the 69% drop in the stock price when Bitcoin fell from around $60,000 to about $30,000 between February and May 2021. The stock's largest drop occurred after Bitcoin reached a then-record high of $69,000 in November 2021. Subsequently, the stock fell by 84% and hit rock bottom in June 2022. Since August 2020, MicroStrategy has experienced multiple crashes of over 50%.

JPMorgan warned that major stock benchmark indices such as the MSCI US Index and the Nasdaq 100 Index may exclude MicroStrategy from their listings. This move could trigger an outflow of about $2.8 billion from the MSCI index alone, as index-matching tools will sell off their holdings of MicroStrategy stock. Analysts pointed out that about $9 billion of the company's market value is held by passive investments such as exchange-traded funds (ETFs).

Despite the recent drop in stock prices, MicroStrategy's market-to-net asset value (mNAV) remains at 1.23 times, reflecting the company's enterprise value. During the bear market in 2022, the company's stock price often fell below its mNAV, resulting in a discount on the value of its held Bitcoin. (CoinDesk)