MicroStrategy market cap drops $30B in four days

MicroStrategy experienced its largest four-day market capitalisation drop in history, erasing over $30 billion as Bitcoin (CRYPTO:BTC) faced a significant price correction.

The company’s market value declined by more than 35% from its peak on November 21, marking the steepest drop ever recorded for the business intelligence firm.

"MicroStrategy stock, MSTR, just fell a MASSIVE -35% from its peak seen on November 21st. That's ~$30 BILLION of market cap erased in 4 trading days," reported the Kobeissi Letter.

MicroStrategy’s stock price fell by 7.5% over 24 hours to $354.10, according to TradingView data on November 27.

This decline coincided with Bitcoin’s correction after reaching its all-time high of approximately $99,800 on November 22.

Despite the recent losses, MicroStrategy and Bitcoin have shown significant growth over longer periods.

In the past month, Bitcoin rose 44%, while MicroStrategy gained 32%.

On a yearly scale, Bitcoin is up 146%, whereas MicroStrategy has surged by more than 599%.

The volatility in MicroStrategy’s stock has drawn attention, with many viewing the company as a leveraged bet on Bitcoin.

However, the recent 35% decline—over four times Bitcoin’s correction—has raised concerns about the risks associated with its stock as a Bitcoin proxy.

The Kobeissi Letter attributed MicroStrategy’s increased volatility to rising interest from retail investors.

“On Wednesday alone last week, retail investors bought ~$42 million worth of MicroStrategy stock, $MSTR. This marked the largest daily retail buy on record and was 8 TIMES higher than the daily average seen in October,” the report noted.

Institutional investors also maintain strong interest, with Allianz, a major European insurance provider, acquiring over 24% of MicroStrategy’s $600 million note offering in March.

The firm’s $2.6 billion note offering has further fueled retail interest in its stock, despite the heightened volatility.