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Microstrategy Stock Dips by 8% After $209 Million BTC Late Year Buy
In a shocking turn of events, MicroStrategy’s stock has plummeted by a staggering 8% following the company’s latest Bitcoin (BTC) acquisition worth $209 million. The significant drop has raised concerns among investors and market analysts alike.
The company, led by Chairman Michael Saylor, has been aggressively pursuing a strategy of buying up large amounts of Bitcoin since the start of its journey in 2020. In fact, MicroStrategy now holds an impressive 446,400 BTC worth $27.9 billion at $62,428 per bitcoin.
To fund this latest purchase, MicroStrategy sold approximately 592,987 shares during the same period as revealed by a recent financial filing. This acquisition marks the eighth consecutive week that the company has added to its already substantial Bitcoin holdings.
Despite the significant investment in cryptocurrency, MicroStrategy’s stock price has taken a hit, with investors becoming increasingly uneasy about the strategy. Some analysts have questioned whether this hyperbitcoinization will ultimately lead to the downfall of the business intelligence firm.
Joe Burnett, the head of market research at Unchained, was quoted as saying that the company is trading at a premium solely so it can grow its Bitcoin-per-share through leverage. This suggests that investors are not entirely convinced about the viability of MicroStrategy’s aggressive cryptocurrency investment strategy.
Additionally, Felix Hartmann, managing partner at Hartmann Capital, warned that he believes MicroStrategy will eventually go bankrupt due to its excessive focus on Bitcoin acquisitions. He even went as far as predicting that within five years, the company would become one of the top 5 companies by market cap before ultimately going bankrupt.
The recent addition to the Nasdaq-100 index may have given investors a temporary boost, but the latest stock decline will likely raise further questions about MicroStrategy’s Bitcoin-centric strategy. As always, it remains to be seen how this will play out in the long run.
Source: www.crypto-news.net
