MicroStrategy Stock Drop Over 11% to Lowest Since November

The stock value of MicroStrategy ($MSTR) experienced an 11% decrease which brought it to its lowest position since November 20 and caused a 55% decline from its peak value of $473.83. 

The substantial market drop has caused traders to worry about how it might affect both investor sentiment and trading approaches toward the company. The company MicroStrategy currently possesses 499,096 Bitcoins which it acquired through $43.7 billion investments at an average Bitcoin price of $66,350 each. 

Source: Google Finance

The recent drop in Bitcoin price to $86,136 triggers concerns about how the company can effectively handle its Bitcoin investments. The Kobeissi Letter reports that MicroStrategy would need Bitcoin prices to stay below $66,000 to trigger the sale of its Bitcoin assets.

Since August 2020 MicroStrategy has continued its Bitcoin acquisition plan and has not sold any Bitcoin assets during periods of market decline. The $8.2 billion debt against its $43.4 billion Bitcoin investment provides the company with protection from short-term financial challenges because most of its convertible notes become due by 2027.

Experts predict Bitcoin will experience better times ahead because institutions continue to show interest and new all-time price records may occur. The present market differs from past crypto winters because governments and institutions now build Bitcoin reserve programs that establish strong demand which may boost prices in the long term.