Retail sales hammered by MicroStrategy Premium as MSTR stock drops 35% in one week

Shares of MicroStrategy ( MSTR ) are down 35% from their high of $535, seen on November 21st. Shares fell to $340 on Tuesday before recovering to end the day at $353, according to Google Finance.

The Kobeissi Letter reported on Nov. 27 that this equates to about $30 billion in market capitalization wiped out in just four trading days and is one of the largest four-day drops in history.

The stock’s big drop comes as Bitcoin retreated about 9% from its all-time high on Nov. 22.

Saylor Premium Hits retail

Additionally, MicroStrategy shares have fallen four times more than Bitcoin over the past week after retail FOMO loaded into the stock ahead of its peak, added Kobeissi, who stated:

“We’ve all heard that MicroStrategy is a ‘leveraged Bitcoin game,’ but this is a whole new level of volatility for the Bitcoin proxy.”

Wow!

MicroStrategy shares, $MSTRjust dropped a MASSIVE -35% from its peak seen on November 21st.

That’s ~$30 billion of market cap wiped out in 4 trading days #Bitcoin it fell 9% from its peak.

This is one $MSTRthe largest 4-day declines in history.

what just happened

(a thread)

— Kobeissi Letter (@KobeissiLetter) November 26, 2024

He added that in just one day last week, Nov. 20, retail investors bought about $42 million in MSTR, for a total of nearly $100 million in retail purchases for the week.

“This marked the largest daily retail purchase on record and was eight times higher than the daily average seen in October.”

He added that over the past two months, MicroStrategy has outperformed Bitcoin by nearly three times. However, over the past few days, “this correlation has widened” and MSTR is now trading with “significantly more volatility,” it noted.

The company currently holds 386,700 BTC worth about $36 billion. However, with a current market cap of $73 billion, the stock is still trading at more than double its Bitcoin holdings, but the premium has narrowed.

“The most important question to ask here is whether Saylor can continue to raise debt to buy Bitcoin,” he asked in the Kobeissi Letter.

Saylor remains unfazed, noting to X on November 26 that the company’s treasury operations yielded a BTC yield of 35.2%, providing a net profit of 88,820 BTC to its shareholders.

Until the quarter, $MSTRTreasury trades yielded a BTC yield of 35.2%, providing a net profit of ~88,820 BTC to our shareholders, or ~1,586 BTC per day. At $92,000 per BTC, that would equate to $8.2 billion for the quarter so far, or $146 million per day.

— Michael Saylor⚡️ (@saylor) November 26, 2024

Cryptocurrency tank

Shares of Coinbase ( COIN ) have also taken a hit, falling 12% over the past week to trade at $295 after hours on Tuesday. These losses are also larger than the withdrawal of Bitcoin.

Meanwhile, mining stocks are also in freefall, with Marathon Digital ( MARA ) losing 5.5% yesterday, falling to $25, while Riot Platforms ( RIOT ) was down 7.4 % on the day, dropping to $11.17.

The crypto market cap fell 3.6% to $3.34 trillion as Bitcoin briefly dipped below $91,000 in the afternoon, before returning to $93,000 during the Asian trading session on wednesday morning

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