MicroStrategy (MSTR) has seen its stock price fall by over 40% from $543 to approximately $325, even as Bitcoin reached a new high of $124,000 in 2025. This decline highlights a divergence in valuation logic between strategy stocks and native crypto assets, sparking debate on Wall Street about potential 'discount opportunities' versus 'risk traps.' The market remains divided on MSTR's valuation, with some investors viewing the stock as a 50% discount opportunity based on its Bitcoin holdings, while others are concerned about its leverage risks. MicroStrategy's debt exceeds $3.8 billion, with 60% at floating rates, posing financial risks if interest rates stay elevated. Additionally, the rise of Bitcoin ETFs, which offer direct price tracking without company-related risks, has diminished MSTR's appeal.