{"id":20049,"date":"2024-12-31T10:53:00","date_gmt":"2024-12-31T08:53:00","guid":{"rendered":"https:\/\/forklog.com\/en\/microstrategy-shares-plunge-44-from-all-time-high\/"},"modified":"2024-12-31T10:53:00","modified_gmt":"2024-12-31T08:53:00","slug":"microstrategy-shares-plunge-44-from-all-time-high","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/microstrategy-shares-plunge-44-from-all-time-high\/","title":{"rendered":"MicroStrategy Shares Plunge 44% from All-Time High"},"content":{"rendered":"<p>On December 30, MicroStrategy&#8217;s stock closed at $302.96, marking a 44% decline from its all-time high of $543.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/1-1381.webp\" alt=\"1-1381\" class=\"wp-image-248964\"\/><figcaption class=\"wp-element-caption\">Daily chart of MicroStrategy shares. Data: <a href=\"https:\/\/finviz.com\/quote.ashx?t=MSTR&#038;p=d\">Finviz<\/a>.<\/figcaption><\/figure>\n<p>Since the beginning of the year, the company&#8217;s shares have surged by 379.7%, including a 79.7% rise in the last quarter. This coincided with an aggressive Bitcoin accumulation strategy during a period when the cryptocurrency&#8217;s value increased by 121% annually.<\/p>\n<p>MicroStrategy&#8217;s latest acquisition of digital gold occurred between December 23 and 29. The company added 2,138 BTC to its holdings for approximately $209 million at an average price of about $97,837 per coin, bringing its total assets to 446,400 BTC.<\/p>\n<p>On December 23, MicroStrategy shares were included in the Nasdaq-100 index.<\/p>\n<p>The positive trend reversed on November 21, when media highlighted that MSTR&#8217;s stock had outpaced Bitcoin&#8217;s performance fivefold since the start of the year.<\/p>\n<p>The Kobeissi Letter linked the stock sell-off to concerns over a proposal to increase the number of shares as part of the &#8220;21\/21 Plan,&#8221; which would expand the company&#8217;s ability to purchase digital gold.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">If the plan is approved, bears will say that this is a highly dilutive move for existing shareholders.<\/p>\n<p>However, if it is not approved, then MicroStrategy will be unable to continue buying <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> on leverage.<\/p>\n<p>Buying Bitcoin is obviously an integral part of <a href=\"https:\/\/twitter.com\/search?q=%24MSTR&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$MSTR<\/a>&#8216;s strategy. <a href=\"https:\/\/t.co\/D6qcb6fNoG\">pic.twitter.com\/D6qcb6fNoG<\/a><\/p>\n<p>\u2014 The Kobeissi Letter (@KobeissiLetter) <a href=\"https:\/\/twitter.com\/KobeissiLetter\/status\/1873830254877565388?ref_src=twsrc%5Etfw\">December 30, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;If the plan is approved, bears will say that this is a dilution of existing shareholders&#8217; stakes. If it is rejected, MicroStrategy will not be able to continue purchases using leverage,&#8221;<\/em> the statement reads.<\/p>\n<\/blockquote>\n<p>Felix Hartmann, founder of Hartmann Capital, noted that the company&#8217;s debt carries an interest rate of approximately 0% and matures between 2027 and 2030, posing no immediate concern.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">My take on Saylor\/MSTR: It will eventually implode, but most shorts will time it wrong and blow up betting against BTC and MSTR.<\/p>\n<p>Key points:<\/p>\n<p>\u2022 Much of MSTR\u2019s debt is near 0% interest, with maturities spread between 2027\u20132030, so neither servicing nor re-payment are near-term\u2026<\/p>\n<p>\u2014 Felix Hartmann (@FelixOHartmann) <a href=\"https:\/\/twitter.com\/FelixOHartmann\/status\/1873799700148527532?ref_src=twsrc%5Etfw\">December 30, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Every Bitcoin drop is accompanied by loud proclamations of impending doom, while every price rise elevates MSTR&#8217;s stock premium and turns [company founder Michael] Saylor into a genius,&#8221;<\/em> he pointed out.<\/p>\n<\/blockquote>\n<p>Bloomberg has expressed doubts about the long-term viability of the strategy of purchasing digital gold through debt financing.<\/p>\n<p>Previously, BitMEX analysts deemed it &#8220;extremely unlikely&#8221; that MicroStrategy would liquidate its Bitcoin reserves due to market conditions. According to their assessment, the asset would need to plummet to $15,000 for this to occur.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On December 30, MicroStrategy&#8217;s stock closed at $302.96, marking a 44% decline from its all-time high of $543. Daily chart of MicroStrategy shares. Data: Finviz. Since the beginning of the year, the company&#8217;s shares have surged by 379.7%, including a 79.7% rise in the last quarter. This coincided with an aggressive Bitcoin accumulation strategy during [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":20048,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1145,1207,1138,1221],"class_list":["post-20049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-market-analysis","tag-microstrategy","tag-opinions","tag-stocks"],"aioseo_notices":[],"amp_enabled":true,"views":"25","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/20049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=20049"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/20049\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/20048"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=20049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=20049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=20049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}