MSTR Stock Bounces After Michael Saylor Says 80-90% BTC Drawdown Is Bearable

Following a 30% decline over the past month, the MSTR stock experienced a relief bounce, rising above $200 on Tuesday, November 18. This comes as Strategy Executive Chairman, Michael Saylor, said that the company could easily handle 80-90% Bitcoin price drawdowns. Saylor’s comments came after multiple recent reports stressed the company might face forced Bitcoin liquidations in case the stock price falls further.

MSTR Stock Jumps 6% As Michael Saylor Instills Confidence

On Tuesday, November 18, the MSTR stock price surged 5.82% in a major relief recovery above $205 level. The stock had faced a brutal correction over the past month and was still down by over 30%.

Amid continuous selling pressure, investors raised concerns that the company could face forced Bitcoin liquidations if the stock doesn’t recover.

Addressing these concerns, Michael Saylor said that Strategy was in a comfortable position to deal with the Bitcoin drawdowns. During his interview with Fox Business on Tuesday, Saylor said:

Despite the latest Bitcoin price correction under $90,000, Saylor remained confident in the asset. “Bitcoin is stronger than ever,” he emphasized. Strategy purchased an additional 8,178 Bitcoins earlier this week. As a result, the company holds a total of 649,870 Bitcoin, worth $59.59 billion.

The firm’s mNAV multiple has fallen to 1.11x, down from roughly 1.52x when Bitcoin reached its all-time high of $126,100 on Oct. 5.

MSTR Stock Underperforms Bitcoin

Over the past year, the MSTR stock went from outperforming Bitcoin by 3x to underperforming the crypto by less than 1x. In the last four months, the stock price has corrected by over 50%.

Additionally, over the past year, Bitcoin has gained 2%, while MSTR share price has dropped 46% and the 2x Long MicroStrategy ETF (MSTU) has fallen 90%. The divergence stemmed from MicroStrategy’s stock trading at more than three times the value of its underlying bitcoin holdings during last year’s post-election crypto surge. That premium has since collapsed, with the stock now trading below the value of its BTC per share.

From a technical perspective, the latest decline appears to be a normal consolidation rather than a shift in the broader trend. MSTR stock saw strong demand near $190, a key level that previously marked its 2024 high and has now turned into solid support. The move aligns with Bitcoin’s rebound from $90,000, indicating a shared demand zone for both assets.

Analysts add that if Bitcoin moves back above $100,000, MicroStrategy shares could gain momentum. Some market experts also continue to give potential targets of over $400 by the year-end.

Michael Saylor Dismisses Claims of Wall Street Impact on Bitcoin Price

During his interview, Michael Saylor dismissed concerns that increased Wall Street participation had amplified Bitcoin’s price swing. Instead, he argued that the asset was becoming significantly less volatile as it matures.

Saylor said Bitcoin’s annualized volatility has declined from roughly 80% in 2020, back when Strategy made its first purchase, to about 50% today. His comments come as Bitcoin dropped nearly 12% over the past week to around $91,600, erasing its gains for 2025.

Saylor believes that Bitcoin’s volatility would continue decreasing over time, estimating that every few years it could fall by another five percentage points. He projected that the asset would eventually stabilize at roughly 1.5 times the volatility of the S&P 500 while delivering “1.5 times” its performance.