The fall of MSTR is a side effect of the strategy's success, Saylor: I will not back down!

Famous Wall Street analyst Tom Lee recently pointed out in an interview with CNBC that the decline in the stock price of MicroStrategy (MSTR) is a “side effect” of its successful strategy, as it holds nearly 650,000 Bitcoins (BTC), making it the preferred tool for institutional investors to hedge against losses in Crypto Assets. He stated that due to the lack of Liquidity in the derivation tools of the crypto market (such as Bitcoin and Ether futures), institutions are unable to effectively hedge their large positions, and therefore turn to shorting MSTR stock as a “proxy” hedge for Bitcoin.

MSTR has fallen 43% year to date.

The pioneer of Bitcoin reserve strategies, MicroStrategy Strategy (, has seen its stock price continuously fall, down 43% year to date, far exceeding Bitcoin's -6%. The mNAV ) currently shows the stock price and its value in Bitcoin has slid from 4 in November last year to nearly 1 now.

Liquidity in the crypto market is still insufficient, MSTR has become an alternative hedging tool.

Tom Lee pointed out in an interview with CNBC that the reason for the decline in the stock price of MicroStrategy (MSTR) is the “side effect” of its successful strategy. The options chain of MSTR has high liquidity, allowing institutions to easily hedge billions of dollars in crypto exposure, while other crypto-native tools such as on-chain derivations lack depth. This makes MSTR a “pressure valve” to absorb the hedging pressure of the entire crypto industry.

“In the crypto world, when they try to hedge the losses of Bitcoin and Ether, they find no other way but to short those liquid stocks that can proxy them, and MicroStrategy is one such example.”

Lee emphasized that this is MicroStrategy's “pain of success”; the more MSTR resembles a Bitcoin proxy, the more its stock price is susceptible to fluctuations in the crypto market.

Lee also mentioned that the market crash on October 10 severely weakened the ability of crypto market makers, and these “crypto central banks” experienced liquidity exhaustion, leading to increased selling pressure on Bitcoin proxy stocks like MSTR, which also reflects deeper structural issues in the market.

Michael Saylor: I will not back down, volatility is a gift from Satoshi Nakamoto to the believers.

In response to the recent market skepticism, Michael Saylor posted emphatically, “I will not back down!” and hinted at enduring the struggle with a picture from the polar region. He referred to volatility as a gift from Satoshi Nakamoto to the believers.

“If Bitcoin rises 2% every month with zero volatility, Buffett would have owned it long ago.”

The drop of MSTR in this article is a side effect of the successful strategy, Saylor: I will not back down! Originally appeared on Chain News ABMedia.