MicroStrategy shares fell below $300 in after-hours trading, down 46% from November high
Here is the English translation:
According to Google Finance data, MicroStrategy's stock price closed down 8.2% on Monday to $302.96, the lowest closing price since November 8. The stock then fell a further 3% in after-hours trading to $293.59, down 46% from its November high.
Although BTC purchases have increased and the NASDAQ 100 index has included it, MSTR has been declining since reaching an intraday high of $543 on November 21.
LVRG Research head Nick Ruck pointed out that as the company is using increased debt and equity to purchase BTC, investors may have started to view MSTR as too risky. MicroStrategy primarily funds its BTC acquisitions by issuing convertible notes and bonds to investors.
Ruck said, "As the company buys more BTC, the equity of existing shareholders gets diluted, but if it doesn't, it may indicate the company is stagnating on the core of its value proposition, putting MSTR in a precarious position as BTC has surged significantly in the past few months while the US is struggling to control inflation and the economic outlook is uncertain with a new White House administration coming in."
