๐ฐ Why MicroStrategyโs Stock Is Falling Despite Bitcoin Bets ๐
MicroStrategy Inc., known for its bold Bitcoin investments, has seen a 20% drop in its stock price over the past month, despite Bitcoin gaining 2%. Here's a quick breakdown of the situation:
Key Issues:
1. ๐ Stock vs. Bitcoin Growth: While Bitcoin prices rose slightly, MicroStrategy's stock (MSTR) plunged, breaking its usual correlation with BTC.
2. ๐ฆ Debt & Bitcoin Purchases: The firm maxed out its debt options to buy more Bitcoin, acquiring 2,138 BTC worth $209M on Dec 30.
3. ๐ณ๏ธ Stock Dilution Concerns: A proposal to raise its share count by $10B has made investors wary. Approving this could dilute shares, while rejecting it could halt Bitcoin purchases.
4. ๐ค Investor Doubts: The proposal has split opinions, but with Michael Saylor holding 46.8% voting power, approval seems likely.
The Future Outlook:
โ Strong YTD Performance: Despite the recent dip, MSTR is up 342% this year, outperforming the S&P 500 (+24.54%).
๐ก Possible Rebound: With Bitcoinโs potential growth and MSTRโs inclusion in the Nasdaq-100, the stock might bounce back in 2025.
MicroStrategy's bold strategy could set a precedent for other firms like Riot Platforms. ๐
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