According to Google Finance data, MicroStrategy's stock price closed down 8.2% on Monday, at $302.96, marking the lowest closing price since November 8. Subsequently, the stock further declined by 3% in after-hours trading, reaching $293.59, a 46% drop from the historical high in November.
Despite an increase in Bitcoin purchases and the Nasdaq 100 index incorporating it, MSTR has been declining since it hit an intraday high of $543 on November 21.
Nick Ruck, head of LVRG Research, pointed out that given the company's use of increased debt and equity to purchase Bitcoin, investors may have begun to view MSTR as too risky. MicroStrategy primarily funds its Bitcoin acquisitions by issuing convertible notes and bonds to investors.
Ruck said, 'When a company buys more BTC, the equity of existing shareholders gets diluted, but if it doesn't, it may indicate that the company is stagnating on a key part of its value proposition, putting MSTR in a precarious position as Bitcoin has surged significantly in the past few months, while the U.S. struggles to control inflation, the economic outlook is uncertain, and a new White House administration is about to take office.' (The Block)

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