MSTR Stock Plummets 48% Facing MSCI Downgrade Risk
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 02 2026- Stock Plunge: MSTR's stock has plummeted nearly 48% in 2025, reaching its lowest point in over a year, primarily due to its mNAV dropping to 1.02, raising concerns about a potential downgrade by MSCI that could impact the company's borrowing capacity.
- Liquidity Risk: If MSCI reclassifies MSTR as a fund, its mNAV could fall below 1, forcing shareholders to liquidate more stock to address liquidity issues, which would exacerbate market anxiety.
- Cash Reserves Strategy: Although MSTR maintains over $2 billion in cash reserves to cover dividends and liabilities, doubts about the sufficiency of this safety net persist, especially in light of potential billion-dollar losses.
- Market Volatility Anticipation: With MSCI's decision looming on January 15, significant movements in the cryptocurrency sector are expected, as MSTR's passive investments may convert into urgent sales, further impacting Bitcoin's price trajectory.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
