MicroStrategy's stock (MSTR) and Bitcoin have historically had a close correlation, but recently MSTR has dropped by 21% in the last 30 days while Bitcoin is down by less than 2%. MSTR has outperformed Bitcoin this year, leading some to view it as a better alternative. However, the divergence is due to MSTR's plans to issue 10 billion shares to fund new Bitcoin purchases, causing concern among existing shareholders. Despite these challenges, it is likely that the share count increase will be approved given CEO Michael Saylor's significant ownership and track record. The decline in MSTR stock may also be attributed to the market adjusting its overvaluation as the company's equity valuation exceeds the value of its Bitcoin holdings. The future of MSTR stock will largely depend on Bitcoin's performance.



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