MicroStrategy’s Stock Falls Below $300, What’s Going On?

Shares of MicroStrategy fell back above $300 in the after-hours session on December 30. Could MicroStrategy be slowly losing steam?

MicroStrategy shares (MSTR) are down 46% from their all-time high in November. This comes with a bid to raise shares by billions of dollars to support the company’s $42 billion financing strategy.

According to Google Finance statistics, the company’s shares fell for the second day in a row, with the price level falling to $ 302.96, which means a loss of 8.2% in share value. Late trading caused the stock price to fall three percent to $293.59.

MicroStrategy’s debt structure reveals total debt of $7.26 billion with an average interest rate of 0.476%. Key maturities include $3 billion due in 2029 at 0% interest, highlighting the company’s long-term financing strategy. Data retrieved from SaylorCharts.com by crypto.news.

Last week MSTR purchased 2138 BTC, bringing the total amount to 446400 BTC. Additionally, its shares were included in the Nasdaq 100 index on December 23, after which its shares increased by 402%.

However, since reaching an intraday high of $543 on November 21, MSTR has been in a downward trend. However, this fact does not take away the focus from the fact that the firm reported 342% growth for the year due to the aggressive Bitcoin (BTC) accumulation strategy it undertook, along with MSTR’s steep price increase of $121. Percentage of cryptocurrency.

Is MicroStrategy losing momentum?

MSTR’s approach to collecting BTC was questioned by Martin Shkreli, one of the founders of hedge funds Elea Capital. He called Michael Saylor an “overzealous” and “untrustworthy” supporter of BTC. “It’s the worst vote I’ve ever seen in the history of proxy voting,” he said, referring to MSTR’s shareholder vote on Bitcoin treasury allocation on Dec. 24, which garnered just 0.5% support. Shkreli said market sentiment has changed, meaning it’s now “a little bit hard to see a bull case” for the BTC price, implying that Saylor’s multibillion-dollar aggressive buying is underperforming.

Markets appear concerned about the possible approval of increasing the number of authorized shares to 10 billion.

If approved, the total share is expected to increase from 330 million to 10.33 BILLION.

The problem is that this has left the company in a “lose-lose” situation for now. pic.twitter.com/CcNr8Etebj

— Kobeissi Letter (@KobeissiLetter) 30 December 2024

This isn’t the first time the company has faced criticism. Some analysts, including Kobbeissi Letter and Jacob King, believe that MicroStrategy operates like a Ponzi scheme because it relies heavily on debt and equity issuance to purchase BTC, which reduces shareholder value.

Bitcoin bloodbath is approaching. Don’t say we didn’t warn you when prices started dropping like a rock.

This entire rise has been fueled by manipulation and fraud, and it will explode as soon as it rises. If you’re deep into crypto, it’s time to take profits; soon…

— Jacob King (@JacobKinge) December 31, 2024

My view on Saylor/MSTR: It will break out eventually, but most shorts will mistime it and blow up bets against BTC and MSTR.

Key points:

• Most of MSTR’s debts have interest rates close to 0% and their maturities are spread between 2027-2030, so neither servicing nor repayment is near-term…

— Felix Hartmann (@FelixOHartmann) 30 December 2024

Felix Hartmann from Hartmann Capital is more optimistic; He argues that near-zero interest rates and maturities between 2027 and 2030 make MicroStrategy’s short-term debt commitment manageable. Hartmann said: “Every BTC drop brings with it harbingers of disaster; “Each pump resets the MSTR premium and makes Saylor look like a genius,” he said, predicting MSTR will surpass five in market cap before crashing. On how shareholder votes will steer MSTR towards its ambitious ‘Bitcoin 21/21’ goal as the firm enters its next phase There is disagreement among investors.