Despite Bitcoin maintaining a stable price level, shares of #MicroStrategy – the company famous for its strong investment strategy in Bitcoin – have dropped nearly 40% in the past month. However, founder Michael Saylor continues to increase the amount of Bitcoin held, showing a strong belief in the future of this cryptocurrency.
MicroStrategy: From peak to decline
On November 20, 2024, MicroStrategy's stock reached an all-time high, allowing the company to join the Nasdaq-100, a key index for leading companies. But just a month later, the stock price plummeted to 290 USD, losing 40% of its value.
The main reason for this volatility lies in how MicroStrategy's stock acts as a 'leverage' based on Bitcoin prices. When the price $BTC rises, the stock often increases even more; but when the price drops or stagnates, the stock also moves strongly in the opposite direction.
Michael Saylor: Continues to buy Bitcoin
Despite the decline in stock, Michael Saylor has not abandoned his investment strategy in Bitcoin. On January 1, 2025, he announced that MicroStrategy had purchased over 2,000 more Bitcoin, bringing the company's total Bitcoin holdings to 444,600 BTC, worth about 42 billion USD at current prices.
Heavy reliance on Bitcoin
MicroStrategy has long changed its business model, shifting from a traditional software company to an actively investing company in #bitcoin .
• Annual software revenue: Less than 500 million USD.
• Market capitalization: Over 70 billion USD.
Compared to #AirBnB , the company had a revenue of 10 billion USD in 2023 but only achieved a market cap of 82 billion USD, showing that MicroStrategy's value heavily depends on Bitcoin's value.
Bitcoin and the cryptocurrency market still maintain a stable rhythm
Although MicroStrategy's stock has dropped sharply, Bitcoin is currently trading around 95,719 USD, a slight increase of 2.3% in the past 24 hours. Ethereum also rose 2.5% to 3,420 USD.
Conclusion: Big bets, high risks
MicroStrategy and Michael Saylor continue to play the role of the largest 'leverage' for Bitcoin in the stock market. However, the strong volatility of MicroStrategy's stock is a reminder that large 'bets' on cryptocurrency always come with high risks.
For investors, this is evidence of the need to be cautious when investing in companies that rely too heavily on Bitcoin's value. Will Michael Saylor's persistence bear fruit, or is this just a risky gamble? Let's wait for the next developments!