Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Benzinga and Yahoo Finance LLC may earn commission or income from some articles through the links below.
Shares of MicroStrategy Inc. (NASDAQ:MSTR) fell more than 8.5% on Monday, marking a difficult start to his young term among the Nasdaq 100.
The software company and top company Bitcoin (CRYPTO: BTCThe holder of ) has been struggling lately, posting its fifth losing session in the last six sessions and plunging over 37% since its all-time high last month.
Why is MicroStrategy sinking?
On Monday, MicroStrategy announced that it sold $561 million worth of common stock to purchase an additional 5,262 bitcoins at an average price of $106,662 per coin. This brings the company’s total Bitcoin holdings to an incredible 444,262 BTC.
Don’t miss:
But both the size and timing of this purchase sparked discontent among traders and analysts.
The last Bitcoin purchase was Michael Sayloris the smallest so far. This is a sharp contrast to the bold, costly acquisitions that have characterized its crypto strategy to date.
The average price paid for new Bitcoin supply is about 12% higher than current levels. Even more telling, the price surpassed December 17’s record close of $106,151 per Bitcoin – an unusual move for a company known for its strategic buying during price declines.
Critics didn’t hold back. Peter Shipa well-known Bitcoin skeptic, Saylor took a swipe at X, saying:
“It seems like you are running out of strength to continue supporting Bitcoin. Additionally, not only is this your smallest purchase, but it is also the first time your average purchase price was above the market price on the Monday you announced the purchase.”
See also: Manufacturer of $60,000 foldable house has built three factory buildings, more than 600 houses and big plans to solve housing construction – You can become an investor today for $0.80 per share.
Meanwhile, the market reaction reflected growing unease.
“$MSTR continues to look pretty heavy,” wrote the Markets & Mayhem account on high-beta-loving speculators.
A risky game of leverage
MicroStrategy’s close connection to Bitcoin has been both MicroStrategy’s crown jewel and Achilles’ heel. With over $41 billion worth of Bitcoin on its balance sheet as of December 2024, the company is inextricably linked to the volatile movements of the cryptocurrency market.
