MicroStrategy (MSTR) Stock Slides 5% Despite Landmark Crypto Legislation

Shares of business intelligence firm and major Bitcoin (CRYPTO: BTC) holder MicroStrategy Inc Class A (NASDAQ:MSTR) are trading lower Friday afternoon, bucking the broader optimism sweeping the cryptocurrency sector.

After opening the session flat, MSTR stock was trading down approximately 6% by Friday afternoon, even as the digital asset industry celebrated a major legislative victory.

What To Know: On Thursday, the U.S. House of Representatives passed the CLARITY Act, a comprehensive bill aimed at providing a clear regulatory framework for digital assets. The legislation delineates oversight authority between the SEC and the CFTC, a move hailed by industry leaders as a "milestone for American innovation."

The bill, which now heads to the Senate, is seen as a foundational step toward legitimizing and integrating blockchain technologies into the U.S. financial system.

This development follows the passage of the GENIUS Act, or stablecoin bill, which is expected to be signed into law and could unlock trillions in market growth. Leaders from Ripple and Coinbase Global Inc lauded the legislative progress as “transformational” for the industry.

However, the positive regulatory momentum failed to lift MicroStrategy, the largest corporate holder of Bitcoin. The stock's decline suggests that despite the favorable long-term outlook for crypto, immediate market pressures or broader profit-taking may be weighing on the heavily-leveraged Bitcoin proxy.

Benzinga Edge Rankings: According to Benzinga Edge stock rankings, which measure stocks across four critical factors, MicroStrategy presents a starkly mixed profile. The company boasts an exceptional Momentum score of 96.54, indicating its stock has experienced extremely strong price appreciation recently.

However, this is contrasted by very low scores in other fundamental areas. MSTR receives a Value score of just 3.23 and a Growth score of 3.11, suggesting that the stock is perceived as overvalued and that its underlying business growth is weak.

This profile paints a picture of a high-momentum stock whose market performance is detached from traditional value and growth metrics.

Price Action: According to data from Benzinga Pro, MSTR shares are trading lower by $424.34 Friday afternoon. The stock has a 52-week high of $542.99 and a 52-week low of $102.40.

Read Also: $67M For More ETH: Bit Digital Expands Its Ethereum Treasury Beyond 120,000 Coins

How To Buy MSTR Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Strategy’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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