Software giant MicroStrategy’s stock has dropped over 36% from its November peak despite its commitment to an aggressive Bitcoin accumulation strategy.
Data from Google Finance shows that MSTR shares closed at $302.96 on December 30 after fluctuating between $301.75 and $320.01 throughout the day.
Mounting Bitcoin Holdings Amid Stock Price Struggles
The closing price was an 8.19% drop from previous levels, with another 3.19% scrapped off in after-hours trading, pushing the stock to as low as $293.59.
However, the biggest dip was observed when comparing MSTR’s highest level of $473.83, achieved on November 20, to its current price, which shows a 36% difference. The all-time high came on the back of MicroStrategy achieving a record $21.8 billion in 24-hour trading volume as it ramped up its BTC accumulation at a time when the asset was breaking price records of its own in quick succession.
The company is currently the biggest corporate holder of Bitcoin after securing another 2,136 BTC, bringing its stash to an impressive 446,400 BTC, with an estimated value of $41.4 billion. Nonetheless, the continued buying spree seemed not to have pushed MSTR out of its lethargy, with the stock failing to go beyond $411 in December.
That being said, across longer periods, MicroStrategy has still performed admirably. Over six months, it is up more than 121% while also gaining 342% year-to-date.
Bitcoin itself has faced a turbulent few weeks, dropping as low as $91,330 shortly after reaching an all-time high of $108,135 on December 17. At the time of writing, the world’s largest cryptocurrency by market cap was trading at $93,800, just 0.1% above its level from yesterday. Across 30 days, it has lost nearly 3% of its value, although over the last 12 months, the price reflects a 121% improvement.
Corporate Moves and Market Reactions
Interestingly, there seems to be a correlation between MicroStrategy buying BTC and repeated market corrections. Each acquisition, usually announced on a Monday, has triggered a price pullback, raising questions about the firm’s impact on the crypto market.
Critics like gold advocate Peter Schiff claim that the company’s purchases are no longer substantial enough to drive the cryptocurrency’s price higher. His comments coincided with BTC shedding 15% from its value, following hawkish signals from the Federal Reserve’s last FOMC meeting.
However, led by Executive Chairman Michael Saylor, MicroStrategy seems undeterred. Its Bitcoin holdings, bought at an average cost of $62,428, now boast an unrealized profit of over $13 billion.
Additionally, a recent announcement about a special shareholders meeting to propose increasing authorized shares and expanding financial options means the Virginia-based entity is preparing for future growth.
