MicroStrategy (MSTR) Drops Alongside Bitcoin
Business-intelligence software firm MicroStrategy, which led the world in institutional crypto investment, is feeling the effects of the recent Bitcoin crash, triggered by the Fed’s hike of interest rates.
The 7 day price chart for Bitcoin. Source: CoinMarketCap
Over the last week, the price of Bitcoin has fallen by more than 20%, with the world’s largest crypto dropping to below $30k for the first time in 10 months. MicroStrategy, which holds a stash of 129,218 bitcoin (BTC), has seen its share prices plunge as a result.
The 5 day price chart for MSTR. Source: MarketWatch
MicroStrategy (MSTR) shares fell as much as 24% on Monday to their lowest level since 2020, as Bitcoin and the stock markets went into free-fall.
MicroStrategy Options Hedge Could Plunge by 96%
Although MSTR has recovered from its low of $208, recorded on Tuesday, to take its current price of $228.6 as of this writing, the company’s share prices could further diminish if Bitcoin sinks further.
In anticipation of further losses, some traders have put options targeting a drop to $10 – representing an approximate 96% decline from its current share prices of around $228. However, there has thus far been little interest in MSTR stock for as low as $40, $20, or even $10.
On the Flipside
Why You Should Care
MicroStrategy’s committment to Bitcoin means that performance on the stock market closely that of Bitcoin.
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Source: Cryptocurrency - investing.com
