As it is known, traded on Nasdaq MicroStrategy(MSTR) shares Bitcoin (BTC) $96,632.0 A stock that strengthens your investments. However, recently it seems that investors have not focused on the rise in the price of MSTR and market expectations have become more cautious. In the last three weeks, MSTR’s 250-day put-call score has increased from -20 percent to zero. This indicator indicates that investors are focusing more on downside risks rather than rising prices. The premiums of call options, which were high in the market in the previous period, are now equal to those of put options.
Shares of MicroStrategy Dropped Hard
Shares of MicroStrategyWhile it peaked at $589 on November 21, it has lost 44 percent of its value since then and is currently trading at $289. This decline in shares came with a 34 percent loss in value in the last two weeks alone.
According to TradingView data Bitcoin This depreciation associated with cryptocurrency It weakened their tendency to see it as a leveraged investment tool. Founder of 10x Research Markus Thielen“MicroStrategy’s 346 percent gain in value in 2024 was well ahead of Bitcoin’s 121 percent rise. “However, it now appears that the purchase price of Bitcoin is much more attractive than purchasing MSTR,” he said.
MicroStrategy’s Bitcoin Investment Strategy Is Less Attractive Now
MicroStrategy started purchasing Bitcoin in 2020 and has received 446 thousand 400 units so far. BTCmeaning he has accumulated approximately $42.6 billion worth of Bitcoin. The company made these purchases mostly by borrowing. Still, the company’s strategy for investing in MicroStrategy is now attracting less attention. This is explained by the fact that investors do not want to bear the extra cost of purchasing MSTR instead of buying Bitcoin directly.
Thielen warned by stating, “The loss of value of MicroStrategy shares shows that although Bitcoin purchases have increased, there is still no strong story for the company’s future.”
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
