The U.S. publicly traded company and Bitcoin holding leader MicroStrategy has seen its stock price drop 44% from its peak in November last year. 10x Research released a report today analyzing that investors are no longer easily accepting MicroStrategy as an informal narrative of a 'leveraged Bitcoin investment tool.' (Background: MicroStrategy fell 20% in December) Analysts: The positive cycle of 'issuing bonds to buy Bitcoin' may be broken, and a peak stage may have already been formed. (Background supplement: Wall Street Journal: Behind the Bitcoin frenzy, the risks of MicroStrategy's leveraged ETF are gradually emerging) MicroStrategy, the U.S. publicly traded company and Bitcoin holding leader, has repeatedly raised cash through the sale of stocks and bonds to purchase Bitcoin. As Bitcoin has continued to surge, the market has been optimistic about MicroStrategy's increasing Bitcoin holdings, which has driven the company’s stock price higher. However, after reaching a high of $473.83 on November 20 last year, MicroStrategy's stock price began to decline continuously. Despite the company continuing to buy Bitcoin during this period and being included in the Nasdaq 100 index on the 23rd of last month, the stock price has continued to drop, currently reported at $289.62, down 44% from its peak in November last year. Performance of MicroStrategy stock. Source: Google The narrative of leveraged Bitcoin is fading. In this regard, 10x Research released a report today indicating that the organization has emphasized in recent weeks that MicroStrategy has a problem of overvaluation, and investors do not regard it as a true leveraged Bitcoin investment tool, but rather as a way to indirectly hold Bitcoin at a high premium. Although MicroStrategy has continued to buy large amounts of Bitcoin, its stock performance has been poor recently. Analysts state that this indicates investors are no longer willing to pay an implied price of up to $200,000 (or higher) for Bitcoin through the company, as the cost of directly purchasing Bitcoin is much lower. The report suggests that investors are no longer willing to support MicroStrategy with inflated net asset values (NAV), reflecting a shift towards more rational investor behavior, and they are no longer easily accepting MicroStrategy as an informal narrative of a 'leveraged Bitcoin investment tool.' 10x Research noted that it is undeniable that Larry Fink, CEO of BlackRock, and Michael Saylor, founder of MicroStrategy, have played a key role in shaping the narrative of this bull market, significantly boosting market interest in Bitcoin. Some investors who cannot directly purchase Bitcoin ETFs have chosen to use MicroStrategy as an alternative. However, with MicroStrategy's stock price having fallen 44% from its peak, along with other companies incorporating Bitcoin into their financial reserves on a smaller scale, the bullish narrative for Bitcoin seems to be weakening. Coupled with other factors, Bitcoin is entering the new year with caution. 10x Research believes that liquidity, trading volume, and stablecoin issuance momentum will be key factors determining Bitcoin's direction. Has the positive cycle been broken? As a firm Bitcoin bull, MicroStrategy has not only refrained from selling Bitcoin for profit during this Bitcoin bull market but has continued to issue convertible bonds and sell stocks to raise funds for increasing its Bitcoin holdings. Last year alone, MicroStrategy spent $22 billion to acquire 257,250 Bitcoins, and its current holdings have reached 446,400 Bitcoins, with a total acquisition cost of up to $27.9 billion. In late October last year, MicroStrategy also proposed a 21/21 plan to conduct $21 billion in equity financing over the next three years and issue $21 billion in fixed income products (including debt, convertible notes, and preferred stock) to raise a total of $42 billion for more Bitcoin purchases. However, similar to the views of 10x Research, CoinDesk's marketing chief editor Stephen Alpher analyzed at the end of last month that as MicroStrategy's stock price continues to fall after being included in the Nasdaq 100 index, the positive cycle of 'issuing bonds + selling stocks - buying Bitcoin' may have been broken. Current signals may already indicate that MicroStrategy's stock price has formed a peak stage.

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