Microstrategy, which happens to be the crypto bull Michael Saylor’s business intelligence firm, and Bitcoin’s price appeared to be intertwined. Here’s what happened yesterday:
Shares of MicroStrategy retraced significantly on the 10th of February. This came right after a fresh sell-off sparked in the price of Bitcoin which fell by more than 7% from its all-time high.
The cryptocurrency market-wide downturn apparently hurt Microstrategy’s stock which fell by more than 23% and went on to become one of the worst assets in the last 24-hours.
Interestingly, Saylor’s company has seen a meteoric rise of more than 700% in share prices during the past six months in tandem with Bitcoin’s price movement which was found to be raging bulls for the past several months now.
Why is this important?
It is without a doubt that Saylor has been at the forefront of the institutional adoption of Bitcoin. It all started in mid-2020 when Microstrategy acquired the majority of its Bitcoin at prices well below the current levels. Since then, it has almost tripled its investment in a short span of time.
Moreover, Microstrategy’s policy is to convert any cash that is not immediately required for operations into Bitcoin. If its latest update is to be taken into account, the firm reportedly had 71,079 Bitcoin tokens. Despite the value of the holdings going down following the correction, the business intelligence firm’s holdings are still worth well over $3 billion.
To top that, Microstrategy’s market cap is nearly $10 billion. Meaning that one-third of the company’s total value originates from none other than its Bitcoin holding. This explains why the shares took a double-digit plunge mimicking BTC’s price action.
The exec is not yet done with promoting Bitcoin. So much so, that just before the crash, Saylor reportedly unveiled a new online course about Bitcoin.
He also asserted that there will soon be an ‘avalanche’ of companies buying the crypto-asset. Saylor was also quoted saying,
“The pitch is Bitcoin is digital gold, and it’s sitting on the world’s first digital monetary network,”