- Daily Dispatch
- Posts
- Why MicroStrategy is tanking 📉
Why MicroStrategy is tanking 📉
Just weeks after pushing to a new all-time high price, MicroStrategy shares are down by nearly half despite ongoing Bitcoin buys. What's happening?
Andrew Hayward
January 02, 2025
Together with:
📝 What you need to know
Six weeks ago, MicroStrategy saw its share price spike to an all-time high above $500 amid a historic Bitcoin bull run. But MSTR is limping into the new year, now down 45% from that peak. Bitcoin, meanwhile, is down only 10% from its own recent peak.
What happened? Amid that surge, MicroStrategy’s market cap eclipsed the value of its vast Bitcoin holdings—now tallying over $43 billion worth—and investors may be reconsidering whether it’s worth paying that premium for MSTR as a BTC proxy. And while the firm has continued buying up Bitcoin, the weekly additions have gotten smaller and smaller of late.
“The stock’s underperformance, despite substantial Bitcoin acquisitions, indicates that investors are no longer willing to pay an implied price of $200,000 (or more) per Bitcoin through MicroStrategy when it can be purchased directly at a much lower cost,” wrote 10X Research in a note to investors Thursday.
😂 Meme of the Day
From our partner
Walrus revolutionizes decentralized data storage with a secure, scalable, & cost-efficient solution for Web3 applications on any chain. Builders and users benefit from high-speed, reliable data access, with Decrypt and One Championship already joining the herd. Join the Quest and get to know Walrus!
