MicroStrategy Stock Plummets Following BTC Sale, Investors Wary

Bullet Points:
• MicroStrategy shares fell to their lowest level since August 2020 following the company’s first-ever Bitcoin sale.
• The cloud-based business intelligence company disclosed that it sold 704 BTC on December 22nd for $11.8 million, in addition to re-purchasing 810 more two days later.
• Miller Tabak + Co chief market strategist Matt Maley weighed in on the MicroStrategy BTC development, noting that the company’s reputation as a devoted token buyer amid crypto winter is worrisome to investors.

MicroStrategy Inc (NASDAQ: MSTR) recently experienced a shocking drop in their stock price, reaching a low of $136.63, which is a 75% decrease from their year-to-date peak. This devastating fall was caused by their recent filing disclosing the company’s first-ever Bitcoin sale. On December 22nd, the company sold 704 BTC for $11.8 million, in addition to re-purchasing 810 more two days later. Altogether, the cloud computing company said it bought roughly 2,395 Bitcoin between November and December 21st, costing approximately $42.8 million in cash.

The news of their Bitcoin sale and acquisition has left investors concerned. Miller Tabak + Co chief market strategist Matt Maley weighed in on the MicroStrategy BTC development, noting that the company’s reputation as a devoted token buyer amid crypto winter is worrisome to investors. The MicroStrategy BTC sale has caused a significant amount of fear in the stock market, leading to the significant stock drop.

Despite the decrease in stock prices, MicroStrategy still remains one of the biggest public investors in Bitcoin. The company has made it clear that they are committed to expanding their investments in the cryptocurrency, as it remains a viable store of value that can be used to hedge against inflation.

It remains to be seen whether the company will be able to recover from its recent stock drop. While the company’s Bitcoin investments may have been met with apprehension from investors, it is possible that the decision will prove to be beneficial in the long run. For now, investors will need to wait and see how the market responds to MicroStrategy’s Bitcoin investments.