MSTR stock is under pressure as it forms a bearish flag pattern, indicating potential further downside. The stock has dropped over 65% from its 2025 high, reaching a low of $160 this week. Technical analysis suggests a bearish breakout could push the stock to $113.67, about 30% below current levels, unless it surpasses the $200 mark. The company continues to dilute shareholders, raising over $2.13 billion last week to purchase Bitcoin, increasing its holdings to 709,715 coins. This dilution has raised outstanding shares to 267 million from less than 80 million in 2021. Additionally, short interest in MSTR has risen to 11.5%, reflecting increased bearish sentiment among investors. MSTR's strategy of accumulating Bitcoin has not yielded strong financial results, with a profit margin of just 16% since 2020. The stock has lost its premium, with its market NAV dropping below 1, further challenging its outlook.