MicroStrategy’s stock (MSTR) experienced a significant decline of over 5% following the recent drop in Bitcoin (BTC) prices. The company’s market capitalization now sits at only 1.6 times its Bitcoin holdings, reflecting a stark shift from the high premium ratio observed earlier this year. Experts attribute the dip to reduced investor confidence and concerns about potential capital allocation limitations for further Bitcoin purchases. 2025 has been a volatile year for cryptocurrency with Bitcoin prices dropping to below $90,000 in late February. Crypto analyst Miles Deutscher believes that MSTR’s ability to secure funding for more Bitcoin investments may be hampered due to the lower premium market cap ratio. The change suggests that the company is now trading closer to its true intrinsic value of Bitcoin instead of a inflated price based on speculation.