The publicly traded business intelligence firm MicroStrategy is facing a staggering $30 billion loss due to the recent sharp downturn in bitcoin’s (BTC) price.
According to a recent report, the company experienced its most significant four-day market cap decline in history, falling over 35% from its November 21 peak as BTC fell 8% from its local high.
While the business intelligence company’s stock (MSTR) has seen a slight rebound, it mirrored the drop in BTC value this week. MicroStrategy’s stock, MSTR, fell by 7.5% in the 24 hours, trading at over $353, down 49.76, according to data from TradingView.
Over 44% Increase
On the bright side, Bitcoin and MicroStrategy have shown strong performance over extended periods. The crypto asset increased by 44% last month, while MicroStrategy’s MSTR surged by more than 32%. Over the past year, the leading cryptocurrency gained 146%, with MSTR soaring over 590%.
Several investors profited from bitcoin’s rise, increasing their portfolios. However, the recent drop has stirred observation in the crypto market.
Despite the recent drop in MSTR, retail investors purchased almost $100 million in MicroStrategy shares, fueled partly by growing interest surrounding the company’s $2.6 billion note offering.
Firms Investing in MicroStrategy
Several major traditional institutions are investing in Michael Saylor’s company, including Allianz, Europe’s second-largest insurer, which purchased more than 24% of MicroStrategy’s $2.6 billion note offering. These notes are part of MicroStrategy’s ongoing capital-raising efforts to expand its Bitcoin holdings.
The firm plans to raise the funds from senior convertible notes at a 0% interest rate to acquire more BTC. The note sale was increased from the initially announced offering of $1.75 billion in aggregate principal amount of notes.
Also, MicroStrategy recently purchased 55,500 BTC, valued at $5.4 billion, and bought for $97,862 per bitcoin. Completing its latest purchase, MicroStrategy achieved a BTC Yield of 35.2% QTD and 59.3% YTD.
Trading from a record high of above $99,000 in the past week, BTC is currently trading at above $93,300, with hope of a comeback.
