Vanguard Reduces MSTR Stake as MicroStrategy's Stock Flatlines
Vanguard Adjusts Position in MicroStrategy
Asset management giant Vanguard has reduced its stake in Michael Saylor's MicroStrategy by 10% during Q2 2025. This move comes as MSTR stock experiences decreased volatility, trading within a narrow range and finding support around $360 for the past four months. The reduction by a major shareholder like Vanguard raises concerns about the stock's short-term outlook.
MicroStrategy, known for its significant Bitcoin holdings, faces this institutional shift despite continuing to acquire more BTC. The stock's performance has been relatively muted, leading to a change in trading dynamics.
Hedge Funds Take the Lead
With long-only investors pulling back, hedge funds are now driving much of the trading activity in MSTR. This makes key technical levels even more critical to watch. Analysts at 10x Research note that while the $360 support has held firm through multiple tests, a breakdown below this level could signal a significant shift in market sentiment.
10x Research analysts suggest that Bitcoin treasury-focused companies are losing their competitive edge. The rise of Ethereum treasuries and upcoming crypto IPOs are attracting new capital, potentially diverting attention from MicroStrategy.
Declining volatility in both Bitcoin and MSTR could diminish the stock's leverage effect relative to Bitcoin, potentially limiting the company's ability to raise capital at premium valuations. Despite a strong Q2 with $10 billion in net income, some analysts still predict a possible rally to $680 for MSTR.
MicroStrategy shares have already slipped to $366, a 13% decrease on the monthly chart. Similarly, Japan's Metaplanet has fallen to $1,333, a 37% drop. Both companies are experiencing a loss of the premium advantage they once held as Bitcoin proxies.
Saylor Teases Further Bitcoin Buys
Despite the stock's struggles, MicroStrategy's Executive Chairman, Michael Saylor, hinted at further Bitcoin purchases in a recent post on X, stating "Insufficient Orange" alongside the company's BTC acquisition chart.
Insufficient Orange pic.twitter.com/QcRT0RTzEg
— Michael Saylor (@saylor) August 17, 2025
Other firms like Metaplanet continue to expand their Bitcoin holdings. Metaplanet recently announced the purchase of an additional 775 BTC, bringing its total holdings to 18,888 BTC.