MicroStrategy’s Stock Falls Below $300, What’s Going On?

MicroStrategy stock fell to more than $300 in after-hours trading on Dec. 30. Could MicroStrategy be slowly losing steam?

MicroStrategy (MSTR) stock is down 46% from its November all-time high. This comes as the company attempts to raise its shares by billions of dollars in order to support its financing strategy of 42 billion dollars.

According to Google Finance According to statistics, the company’s shares fell for the second day in a row and the price level reached a very low level of $302.96, which means a loss of 8.2% in the value of the shares. Late trading caused the stock price to fall further by three percent to $293.59.

Last week, MSTR acquired 2138 BTC, bringing the total amount to 446400 BTC. Additionally, its shares were added to the Nasdaq 100 index on December 23, after which its shares jumped by 402%.

However, since the intraday high was reached on November 21 at $543, MSTR has been declining. This fact, however, does not take away from the fact that the company has recorded 342% growth for the year so far due to the aggressive Bitcoin accumulation strategy (BTC) that MSTR undertook alongside the cryptocurrency’s steep 121% price rise.

Is MicroStrategy losing momentum?

MSTR’s BTC accumulation approach has been questioned by Martin Shkrelico-founder of the hedge fund Elea Capital. He called Michael Saylor an “overzealous” and “uncredible” supporter of BTC. “The worst vote I’ve ever seen in the history of proxy voting,” he said, referring to MSTR’s shareholder vote on Bitcoin Treasure allocation which garnered only 0.5% support on December 24. Shkreli said market sentiment had changed and it was now “a little difficult to see the bullish case” for the price of BTC, implying that Saylor’s aggressive multibillion-dollar purchases had taken place. underperformed.

This is not the first time the company has faced criticism. Some analysts, including Kobbeissi Letter and Jacob King, believe that MicroStrategy operates like a Ponzi scheme because it relies heavily on issuing debt and equity to purchase BTC, which dilutes shareholder value.

Felix Hartmann of Hartmann Capital is more optimistic, arguing that near-zero interest rates and maturities spaced between 2027 and 2030 make MicroStrategy’s short-term debt commitment manageable. Hartmann said: “Every drop in BTC brings pessimists; each pump resets the MSTR premium and makes Saylor look like a genius,” predicting that MSTR will surpass five in market value before collapsing. There is disagreement among investors over how the shareholder vote will steer MSTR toward its ambitious “Bitcoin 21/21” goal as the company enters its next phase.