After the Bitcoin purchase of MicroStrategy’s stock price crumbled in early trading on Monday, MicroStrategy fell 7.5%, as investors showed a more cautious attitude towards the company’s cryptocurrency investments.
In its most recent purchase, the company spent roughly $489 million to procure 13,005 tokens. At the time of the disclosure, the price of Bitcoin continued to fall, and the value of the acquisition of MicroStrategy was already about $63 million lower than the price paid by the company.
Debt trading, you use it to raise funds to buy more cryptocurrencies. Earlier this month, MicroStrategy announced that it would raise $500 million in junk bonds to purchase more bitcoins.
MicroStrategy captured people’s attention last year when it made a lot of bets on cryptocurrencies, spending $250 million while most other companies stuck around. The profit margin of cryptocurrency.
At that time, the price of Bitcoin was in the range of $12,000, so when it started to perform remarkably in the first third of 2021, investors flocked to the company.
At one point, the stock reached $1,315; following Monday’s decline, the price fell to $587.
MicroStrategy’s CEO, Michael Saylor, has been and will continue to be one of the biggest movers of Bitcoin to date, and he recently told Fortune magazine that he is pleased with El Salvador’s decision to accept BTC as legal tender.
He said: “I can’t think of it as anything other than being pleasant.” The new law grants “everyone in El Salvador the right to property without government or bank interference, which is why I think this is a good thing.”