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The stock price of Strategy (Nasdaq: MSTR), formerly known as MicroStrategy, has dropped 60% from its peak. At $224.20 per share, MSTR stock is far below its all-time high of $543. The recent slump mirrors Bitcoin’s (BTC) decline, as its price fell more than 10% within the last month.

Bitcoin’s Price Correlation with MSTR Stock

The drop in Bitcoin’s price has directly impacted MSTR stock, which holds a substantial Bitcoin treasury. Strategy’s Bitcoin holdings now total 641,692 BTC, worth over $65 billion at Bitcoin’s current value of $101,480.28. Financial analyst Andreas Steno Larsen noted that if the mNAV of Strategy drops below 1, the company may be forced to sell some of its Bitcoin to buy back shares.

MSTR will have an incentive to sell Bitcoin to buy back equity if we go below <1 of NAV (we are around 1 currently)

— Andreas Steno Larsen (@AndreasSteno) November 12, 2025

The mNAV indicator is a crucial metric that compares the stock price of Strategy to its Bitcoin holdings per share. At present, MSTR’s mNAV stands at 1.22, above the critical 1.0 mark. If it dips below 1, it would suggest that the market values Strategy’s stock less than its Bitcoin holdings.

Jim Chanos and Wall Street Speculation

Famous short-seller Jim Chanos recently closed his MSTR short position, raising concerns about the company’s mNAV. He pointed out that if the ratio drops too low, Strategy could be pushed to liquidate Bitcoin assets. Popular crypto trader James Wynn speculated that Wall Street might try to force Strategy to sell its Bitcoin for a discounted price.

Is Wall St trying to force MicroStrategy to sell its bitcoin so it will dump the market and they can scoop it up? 🤔

- Wynn pic.twitter.com/6oZxPyel5g

— James Wynn (@JamesWynnReal) November 12, 2025

Crypto analyst Ted Pillows emphasized the correlation between MSTR stock and Bitcoin’s price since 2020. Both assets are currently trading below their weekly 50-SMA. This has led some analysts to wonder if Bitcoin might continue its downward trend, with MSTR stock following closely.

$BTC has been following $MSTR since 2020 with a few months' lag.

In Q3, MicroStrategy went below its weekly 50-SMA and hasn't reclaimed it.

Last week, Bitcoin went below this level and is now sitting above it.

If history is anything to go by, Bitcoin could lose this weekly… pic.twitter.com/tmWWbcxSa5

— Ted (@TedPillows) November 12, 2025

Crypto analyst Toby Cunningham suggested that if MSTR stock collapses, Strategy co-founder Michael Saylor might be forced to sell Bitcoin. Cunningham believes that such a sale would likely occur near the bottom of the next bear market. Traders should be prepared for potential buying opportunities when Strategy is forced to offload its Bitcoin holdings.

The price movement of MSTR stock is tightly linked to Bitcoin’s performance, making it a key indicator for Bitcoin investors. Strategy’s strategy of holding Bitcoin has come under scrutiny as its stock price continues to decline.

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