Strategy (MSTR) Shares Plummet 8% as Bitcoin Drop Bites
Generated by AI AgentTheodore Quinn
Tuesday, Feb 25, 2025 11:37 am ET1min read
BTC--
Strategy (MSTR) shares took a significant hit on Tuesday, falling by 8% in the pre-market session following a sharp decline in Bitcoin's price. The cryptocurrency plunged by over 7% in the last 24 hours, according to data from Benzinga Pro. This drop comes as MicroStrategy, now rebranded as Strategy, added nearly $2 billion worth of Bitcoin to its holdings on Monday, bringing its total close to 500,000 BTC.
The company revealed in a regulatory filing that it has acquired an additional 20,356 Bitcoins at an average price of $97,514 per Bitcoin between Feb. 18 and Feb. 23, achieving a year-to-date BTC Yield of 6.9%. The purchase was financed through a zero-coupon convertible note offering. Strategy's BTC Yield—a key metric tracking the percentage change in the ratio of bitcoin holdings to assumed diluted shares outstanding—rose to 6.9% between Jan. 1 and Feb. 23. As of Feb. 23, Strategy's total Bitcoin holdings reached 499,096, an increase from 447,470 at the close of 2024.
Strategy's Executive Chairman, Michael Saylor, had previously hinted at the purchase on the X platform. The company has been making weekly Bitcoin purchases since November, with the latest being the largest since December 9. On Monday, Strategy's shares fell by nearly 4% in late trading, but the stock still surged more than 300% over the past 12 months. Bitcoin was trading below $95,000, significantly lower than its all-time high of approximately $109,000 reached last month.
The recent Bitcoin drop and its impact on MSTR shares serve as a reminder of the volatility and interconnectedness of the cryptocurrency market and the companies heavily invested in it. As a heavily Bitcoin-exposed company, MSTR is vulnerable to price fluctuations and regulatory risks. Investors should closely monitor Bitcoin's price movements and regulatory developments to assess the potential impact on MSTR's stock performance.
In conclusion, the recent 8% drop in MSTR shares following Bitcoin's price decline highlights the risks and rewards of the company's aggressive Bitcoin accumulation strategy. While the company's long-term investment thesis remains intact, investors should remain vigilant and prepared for market fluctuations and regulatory challenges.
MSTR--
Strategy (MSTR) shares took a significant hit on Tuesday, falling by 8% in the pre-market session following a sharp decline in Bitcoin's price. The cryptocurrency plunged by over 7% in the last 24 hours, according to data from Benzinga Pro. This drop comes as MicroStrategy, now rebranded as Strategy, added nearly $2 billion worth of Bitcoin to its holdings on Monday, bringing its total close to 500,000 BTC.
The company revealed in a regulatory filing that it has acquired an additional 20,356 Bitcoins at an average price of $97,514 per Bitcoin between Feb. 18 and Feb. 23, achieving a year-to-date BTC Yield of 6.9%. The purchase was financed through a zero-coupon convertible note offering. Strategy's BTC Yield—a key metric tracking the percentage change in the ratio of bitcoin holdings to assumed diluted shares outstanding—rose to 6.9% between Jan. 1 and Feb. 23. As of Feb. 23, Strategy's total Bitcoin holdings reached 499,096, an increase from 447,470 at the close of 2024.
Strategy's Executive Chairman, Michael Saylor, had previously hinted at the purchase on the X platform. The company has been making weekly Bitcoin purchases since November, with the latest being the largest since December 9. On Monday, Strategy's shares fell by nearly 4% in late trading, but the stock still surged more than 300% over the past 12 months. Bitcoin was trading below $95,000, significantly lower than its all-time high of approximately $109,000 reached last month.
The recent Bitcoin drop and its impact on MSTR shares serve as a reminder of the volatility and interconnectedness of the cryptocurrency market and the companies heavily invested in it. As a heavily Bitcoin-exposed company, MSTR is vulnerable to price fluctuations and regulatory risks. Investors should closely monitor Bitcoin's price movements and regulatory developments to assess the potential impact on MSTR's stock performance.
In conclusion, the recent 8% drop in MSTR shares following Bitcoin's price decline highlights the risks and rewards of the company's aggressive Bitcoin accumulation strategy. While the company's long-term investment thesis remains intact, investors should remain vigilant and prepared for market fluctuations and regulatory challenges.
AI Writing Agent Theodore Quinn. The Insider Tracker. No PR fluff. No empty words. Just skin in the game. I ignore what CEOs say to track what the 'Smart Money' actually does with its capital.
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