MSTR Stock Plummets Toward $270 as JPMorgan Sounds Alarm After S&P Exclusion
MicroStrategy's bitcoin-heavy strategy hits turbulence as Wall Street giants question its viability.
JPMorgan's Warning Shot
The banking heavyweight flags serious downside risk—pointing directly to that $270 price target. Their analysis suggests MSTR's concentrated crypto exposure creates unsustainable volatility.
S&P's Snub Stings
Exclusion from the flagship index wasn't just a rejection—it was a statement about traditional finance's skepticism toward bitcoin-backed equities. The move effectively sidelines MSTR from mainstream institutional portfolios.
Because nothing says 'stable investment' like tying your fortune to an asset that can swing 20% before breakfast.
Michael Saylor’s Strategy (MSTR stock) faced a consequential setback as it missed S&P 500 inclusion again.
MSTR (microstrategy) stock price extends its fall on Thursday and risks falling deeper, despite upside momentum in Bitcoin price and other crypto stocks.
JPMorgan Raises Alarm on Strategy and Bitcoin Treasury
On September 11, Wall Street giant JPMorgan raised red flags on Strategy and crypto treasury companies after the firm’s inclusion into the S&P 500 was rejected.
It warned that benchmark index providers would become reluctant to include companies with Bitcoin and crypto treasuries in stock indices.
This was not the first time JPMorgan raised a red flag on Strategy. In June, the financial giant claimed that Strategy could face valuation risk as it depends heavily on passive funds and Bitcoin.
JPMorgan noted growing investor fatigue, weaker issuance, and rising risks to the sustainability of corporate crypto treasury models.
However, JPMorgan bought $100 million worth of MSTR shares earlier in February, increasing its total MSTR holdings to $300 million. The firm now holds $808 million in MSTR shares.
MSTR Stock Price Faces Correction to $270
MSTR stock was trading mostly sideways, climbing nearly 0.24% on Thursday. The 24-hour low and high were $322.77 and $328.69, respectively.
The stock fell nearly 2% to $326.45 on Wednesday. As per Yahoo Finance, Strategy stock has tumbled more than 18% in a month, reducing the year-to-date return to 13%.
Analysts remain bullish on MSTR (microstrategy) stock price due to the recent change in sentiment. However, technical chart signals a risk of falling to $270.
With a bear cross pattern formation on the weekly chart, the MSTR stock is holding right above the 50-EMA support.
If bulls fail to support a strong bounce back, the stock could close below $320 and even to $270.
As The Coin Republic reported earlier, the average price target for MSTR stock in August was $561. It has now dropped to $547.
On September 8, TD Cowen reiterated its ‘buy’ rating and decreased the stock price target to $640 from $680.
Meanwhile, Mark Palmer from Benchmark retained a price target of $705, while reiterating his buy position.
Strategy Grabs New Investments
Vanguard Group remains the largest shareholder of Strategy (MSTR), holding more than $7.49 billion. Followed by Capital International Investors, BlackRock, and Morgan Stanley.
Earlier this week, Arizona State Retirement Fund (ASRS) increased its MSTR holdings by $2 million. It now holds 72,315 shares worth over $24 million.
Moreover, Robeco Institutional Asset Management disclosed $18 million in total MSTR purchases in Q2.
This firm increased its holding to 125,650 shares worth over $41.3 million, reported bitcoin Treasuries on September 11.
As The Coin Republic reported, Michael Saylor’s Strategy acquired 1,955 BTC for $217.4 million. The company increased its total Bitcoin holdings to 638,460 BTC.
At the time of writing, the price of BTC jumped nearly 1% in the past 24 hours, with the price trading at $114,585. The 24-hour low and high were $113,181 and $114,714, respectively.
However, trading volume dropped by 10% due to high volatility after the CPI inflation data. This indicated a lack of interest among traders due to uncertainty.
