MicroStrategy Drops 5% Despite Major Crypto Policy Win in Washington

MicroStrategy (MSTR, Financials), the largest corporate holder of bitcoin (BTC-USD), slid more than 5% Friday afternoon even as the crypto industry scored a legislative win long seen as transformational.

The U.S. House passed the CLARITY Act, a sweeping bill that finally splits crypto regulation between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Industry leaders called it a milestone for American innovation. The bill now heads to the Senate.

The move follows last week's passage of the GENIUS Act, a stablecoin-focused bill expected to unlock new capital flows into digital assets. Executives at Ripple and Coinbase called the two bills foundational for the future of U.S. crypto markets.

Yet the good news didn't lift MicroStrategy, which often trades in line with bitcoin sentiment. Shares opened flat but turned lower, trading near $424 down over 5% even as bitcoin hovered around $117,500.

Analysts say the divergence may be due to short-term market pressures, with some pointing to MSTR's highly leveraged exposure to bitcoin and recent profit-taking after a sharp rally.