MicroStrategy (MSTR) shares fell as much as 12% on Tuesday, amid hints of resilience in the broader US stock market.
MicroStrategy (MSTR) stock fell again on Tuesday, extending an early-week decline fueled by a highly volatile cryptocurrency market that saw Bitcoin (BTC) momentarily break above the $30,000 barrier.
During the early morning trade, MSTR hit an intraday low of $513.02, capping a 12-percent drop. On Monday, shares of the business intelligence provider fell 16.7%, wiping off much of last week’s gains.
On Monday, the broad S&P 500 Index of large-cap companies surged 1.4 percent, while the tech-heavy Nasdaq Composite Index rose 0.8 percent. On Tuesday, both indices were expected to close higher.
Since CEO Michael Saylor initially declared his company’s connection to Bitcoin, MSTR has acted as a crypto proxy stock.
Saylor’s Bitcoin gamble drew positive attention to the cryptocurrency business and aided the market’s meteoric rise between October 2020 and May 2021.
As a result, MicroStrategy’s stock price soared in February at $1,315.00 before drastically falling over the next three months.
Saylor and organizations under his direct control currently have a total of 111,000 BTC under their control. MacroStrategy LLC, Saylor’s new Bitcoin holding firm, has 105,084 BTC worth around $3.4 billion.
On Tuesday, the bitcoin market suffered significant losses. Cryptocurrencies have lost more than half of their market capitalisation since their peak last month, with a total market capitalization of $1.3 trillion.