2021-3-5 11:33 |
MicroStrategy has made waves in the cryptocurrency scene in the past few months after buying up large chunks of the Bitcoin supply.
This bullish Bitcoin initiative has been led by MicroStrategy CEO Michael Saylor. After watching the USD lose more than 10% in the past year, Saylor decided to move large portions of the company’s cash reserves into Bitcoin as a hedge.
It’s a move that’s paid off huge for the business intelligence firm. The company’s stock rose from around $220 in November 2020 to an all-time high of $1,316 on Feb. 9, 2021 — a gain of more than 500%.
In this same time period, the price of Bitcoin (BTC) saw a 266% gain, skyrocketing from under $16,000 to a new all-time high of $58,433 on Feb. 21, 2021.
Since reaching their respective all-time highs, the price of Bitcoin and MicroStrategy stock (MSTR) prices have been falling in unison. MSTR is currently trading hands for $626, a 52% drop in less than a month. Bitcoin has fallen 20% in the same period.
Bitcoin Price vs. MSTR Price chart by TradingViewMicroStrategy’s BTC holdings currently stand at 90,859 bitcoins, which were acquired for $2.186 billion. The average price for each being $24,063 per token. With such a massive stake, MicroStrategy stock prices have become positively correlated to the price of Bitcoin.
The overall slump seen across the broader cryptocurrency market has many investors questioning if the top is already in. The total cryptocurrency market cap is back under $1.5 trillion today after topping out around $1.8 trillion less than two weeks ago.
It’s unlikely that Bitcoin bulls like Michael Saylor and Elon Musk will be deterred in their mass-buying strategy. Recent data shows that these crypto-forward institutions have been taking advantage of the relatively low BTC prices to add to their reserves.
The post MicroStrategy Stock, Bitcoin Price Take a Synchronized Tumble appeared first on BeInCrypto.
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