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Michael Saylor’s MicroStrategy experienced a 35 percent decline from its peak on November 21, resulting in a loss of $30 billion in market capitalization following a recent downturn in Bitcoin, as reported by global capital markets commentary platform The Kobeissi Letter in a post on November 26 on X.
The Kobeissi Letter noted in its Tuesday post that this significant decrease in MicroStrategy’s valuation represented the largest four-day decline in its history, indicating a “whole new level of volatility for the Bitcoin proxy.”
WOW.
MicroStrategy stock, $MSTR, has just dropped a MASSIVE -35% from its peak observed on November 21st.
That equates to approximately $30 BILLION of market cap lost in just 4 trading days as #Bitcoin fell around 9% from its high.
This marks one of $MSTR’s largest four-day declines ever.
What just occurred?
(a thread)— The Kobeissi Letter (@KobeissiLetter) November 26, 2024
“Bulls will contend that Saylor has revolutionized the business landscape and that the stock is undervalued. Bears will claim that this resembles a classic Ponzi scheme and that capital is starting to dwindle,” The Kobeissi Letter stated. “Can Saylor sustain his ability to raise debt in this environment?”
In spite of these concerns, the Virginia-based software company’s stock rose nearly 8 percent on Wednesday.
$MSTR has successfully completed a $3 billion offering of convertible notes with a 0% coupon and a 55% premium, featuring an implied strike price of approximately $672. https://t.co/GzO0br0Xfh
— Michael Saylor
(@saylor) November 21, 2024
“$MSTR serves as a credit default swap on over $100 trillion in 20th-century assets,” Saylor remarked in a post on X on November 27, which garnered around 16,000 likes by midday Wednesday.
Michael Saylor Bets Big On Bitcoin
Saylor, who has spearheaded MicroStrategy’s Bitcoin acquisitions since the company began purchasing the asset in 2020, continues to make substantial investments in the cryptocurrency.
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On November 21, the firm finalized a $3 billion offering of convertible notes maturing in 2029, providing fresh capital for its ongoing Bitcoin purchases.
As per a November 25 8-K filing with the United States Securities and Exchange Commission, MicroStrategy acquired an additional 55,000 Bitcoins valued at $5.4 billion.
In a recent interview with CNBC, Saylor conveyed his belief that MicroStrategy’s success would persist.
“We’re generating $500 million a day,” Saylor stated. “I’m looking at my screen, and we’re selling dollar bills for $3, sometimes a million times a minute.”
The commentary from The Kobeissi Letter coincides with Bitcoin beginning to rise again after a retreat from its post-election surge that nearly brought the cryptocurrency to the $100,000 mark.
The value of the token created by Satoshi Nakamoto is anticipated to be supported by President-elect Donald Trump’s overall approach to the blockchain industry.
The former reality television personality, who previously launched his family’s cryptocurrency platform World Liberty Financial, is expected to implement digital asset-friendly regulations upon his return to the Oval Office in January.
Whether Bitcoin will exceed $100,000 by that time remains uncertain.
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