Shares of MicroStrategy fell sharply after Andrew Left’s Citron Research announced in a post on the X platform that it had taken a short position against the company. MicroStrategy has effectively turned into a Bitcoin investment fund.
The stock fell 16% to close at around $397, reversing gains of about 15% earlier in the session. The decline was the stock’s worst performance since April 30, despite Bitcoin’s continued rally to a record high.
It is worth noting that despite the 16% decline in today's trading, the stock is still up 21% on a weekly basis.
Under its CEO Michael Saylor, MicroStrategy has been closely associated with the cryptocurrency after buying billions of dollars worth of the digital currency, some of which was financed by selling debt. But with the launch of Bitcoin ETFs, investors can now buy these funds directly rather than using MicroStrategy’s stock as a publicly traded broker.
