• MicroStrategy’s stock recently dropped to its lowest level since August 2020 following its first-ever Bitcoin sale.
• In a recent filing, the cloud-based business intelligence company disclosed that it sold 704 BTC on December 22nd for $11.8 million.
• Miller Tabak + Co chief market strategist Matt Maley suggested that the company’s reputation as a devoted token buyer amid crypto winter is worrisome to investors.
MicroStrategy, a cloud-based business intelligence company, recently saw its shares plummet to their lowest level for more than two years following a recent Bitcoin (BTC) filing. The company’s stock dropped 1.1% to $136.63 Thursday, and is at a 75% drawdown year-to-date (YTD).
In a recent filing, MicroStrategy disclosed that it sold 704 BTC on December 22nd for $11.8 million. According to the filing, the sale was made for tax purposes but the business intelligence company re-purchased 810 more two days later. Altogether, MicroStrategy said it bought roughly 2,395 Bitcoin between November and December 21st through its subsidiary MacroStrategy, costing approximately $42.8 million in cash.
Miller Tabak + Co chief market strategist Matt Maley weighed in on the MicroStrategy BTC development, suggesting that the company’s reputation as a devoted token buyer amid crypto winter is worrisome to investors. He pointed out that other companies such as Tesla, Square and Overstock have also invested in Bitcoin, but not with the same commitment as MicroStrategy.
Despite the current market conditions, MicroStrategy CEO Michael Saylor has remained confident in his company’s Bitcoin investments. In a recent tweet, Saylor said that he believes that Bitcoin is the world’s most reliable store of value and will eventually be worth hundreds of thousands of dollars. He has also made it clear that his company plans to keep on buying Bitcoin, with the latest filing showing that the company has spent more than $1.1 billion on the cryptocurrency.
It remains to be seen how MicroStrategy’s Bitcoin investments will play out in the long run. However, investors remain concerned about the company’s Bitcoin investments, as the stock has continued to struggle. For now, it seems investors may need to wait and see how it all plays out in the coming months.