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MicroStrategy Stock Dips by 8% Following Fresh $209 Million Bitcoin Buy
Business intelligence firm MicroStrategy has seen its stock dip by a whopping 8% following the purchase of $209 million worth of Bitcoin. The massive buy, which added to the company’s already significant holdings, sparked immediate speculation and analysis regarding the potential risks associated with this aggressive investment strategy.
As reported, MicroStrategy acquired 2,136 new Bitcoins at an average price of approximately $97,837 per coin. This latest purchase brings the total number of BTC held by the firm to a staggering 446,400 units, which were purchased for a total value of $27.9 billion.
Despite this massive influx of capital into Bitcoin, MicroStrategy’s stock has taken a hit, with shares dropping by 8.19% and now trading at around $302 per share. This sudden downturn in the company’s stock price has led to a flurry of analysis and speculation from industry experts, who are attempting to understand the potential implications of this buy on the firm’s overall financial situation.
One such analyst, Felix Hartmann, managing partner of Hartmann Capital, offered his take on the matter, suggesting that MicroStrategy’s Bitcoin activities may ultimately lead to bankruptcy for the company. “Within 5 years, MSTR will first become a top 5 company by market cap before eventually going bankrupt,” Hartmann warned.
Another industry expert, Joe Burnett, head of research at Unchained, also weighed in on the situation, characterizing MicroStrategy’s strategy as “hyperbitcoinization.” According to Burnett, this approach sees the firm trading at a premium in order to grow its Bitcoin-per-share through leverage.
Source: www.crypto-news.net
