# MicroStrategy stock drops 20% as Bitcoin ETF approvals curb Reddit

**Published:** 2026-07-23T19:48:40.324Z  
**Topic:** Microstrategy Bitcoin  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/ebd592a6-f273-4175-8cdf-d6a2c12a6dd8

MicroStrategy shares fell 20.7% in January 2024 after spot‑Bitcoin ETFs launched, wiping out Reddit‑driven retail support and leaving the stock at $336 versus

MicroStrategy’s shares slumped 20.7% in January 2024, the steepest monthly decline since the company’s 2022 Bitcoin‑price crash, after the SEC’s approval of spot‑Bitcoin exchange‑traded funds siphoned off the Reddit‑driven retail investors who had treated the stock as a proxy for Bitcoin exposure【2】.  

| At a glance | |
|---|---|
| Price | $336 (down from $473 peak) |
| 24h % move | –4% on earnings day, rebounded next day |
| Monthly % move | –20.7% in Jan 2024 |
| Catalyst | Launch of 11 spot‑Bitcoin ETFs on Jan 11, 2024 |

## ETF approvals pull retail focus  
The market‑wide rollout of 11 spot‑Bitcoin ETFs on Jan 11, 2024 coincided with a 21.7% month‑to‑date drop in MicroStrategy’s stock, even as Bitcoin itself rose 5.6% over the same period【2】. Reddit‑based investors, who had been buying MSTR shares to gain indirect Bitcoin exposure, shifted to the newly available ETFs, leaving the stock without its usual retail tailwind. The Grayscale Bitcoin Trust’s conversion to an ETF and its 10.4% price jump in early January further highlighted the shift in investor preference【2】.

## Earnings, Bitcoin holdings and valuation gap  
MicroStrategy reported a 3% revenue decline and a $671 million net loss for Q4 2024, prompting a roughly 4% share dip on the earnings day before a quick rebound【1】. Despite the loss, the firm added $20.5 billion of Bitcoin in the quarter—the largest quarterly purchase to date—bringing its total holdings to about $30.4 billion, or roughly 2% of all Bitcoin in circulation and 471,000 coins【1】. The company’s market cap now sits near $85 billion, almost double the net asset value of its Bitcoin stash, a disparity that finance professor Bryan Routledge calls “irrational”【1】.

## Retail sentiment versus institutional focus  
The contrast between MicroStrategy’s soaring market cap (up 560% over the past year) and its ongoing operating losses (negative EBITDA since Q2 2023) underscores why retail investors have been drawn to the stock: it offers a way to speculate on Bitcoin without buying the cryptocurrency directly【1】. However, the ETF launches have provided a more direct, lower‑cost route, eroding that niche and prompting a sharp sell‑off among the Reddit community that had previously buoyed MSTR’s price.

## What to watch  
- **$340 support level** – the stock’s recent low after the earnings rebound; a break could trigger further downside.  
- **Future Bitcoin ETF launches** – additional spot‑ETF approvals could continue diverting retail flow away from MSTR.  
- **Quarterly Bitcoin purchases** – any deviation from the $20 billion‑plus quarterly buying pattern would signal a shift in the company’s core strategy.  

The episode illustrates how quickly retail sentiment can pivot when a more direct Bitcoin investment vehicle becomes available, leaving MicroStrategy’s valuation increasingly dependent on its underlying business performance and the broader Bitcoin market.

## Sources
1. Fortune — [Experts warn MicroStrategy's high-flying valuation has 'no... | Fortun...](https://fortune.com/2025/02/08/microstrategy-strategy-valuation-michael-saylor-bitcoin-risk/)
2. The Motley Fool — [Why MicroStrategy Stock Fell More Than 20% Last... | The Motley Fool](https://www.fool.com/investing/2024/02/03/why-microstrategy-stock-fell-20-percent-last-month/)

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Cite as: TrendWatcher, "MicroStrategy stock drops 20% as Bitcoin ETF approvals curb Reddit", https://www.trendwatcher.in/article/ebd592a6-f273-4175-8cdf-d6a2c12a6dd8