Ponzi

Bitcoin

MSTR

<p><a href="https://coinpedia.org/news/investor-fred-krueger-shares-key-insights-on-mstr-issuance/" target="_blank" rel="noreferrer noopener">MicroStrategy’s Bitcoin strategy</a> is very simple: Raising debt to buy Bitcoin and selling shares at a premium to repeat the cycle. Until recently, it had been regarded as outstanding. At the start of November 21, the MicroStrategy price stood at a peak of $535.42. But just days later, something unexpected happened. The stock has since dropped by over 33%. </p>   
<p>What's behind this sudden fall, especially when Bitcoin itself has only slipped slightly?</p>   
<p>Dive in to discover the story behind the numbers and what this means for the company’s future.</p>   
<h2 class="wp-block-heading" id="h-massive-stock-drop-for-microstrategy-nbsp">Massive Stock Drop for MicroStrategy&nbsp;</h2>   
<p>In the past four days, MicroStrategy’s stock has plunged by 33.94%, marking its biggest four-day drop in recent history. This has resulted in the company losing more than $30 billion in market value.</p>   
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<p>Is the company’s so-called revolutionary Bitcoin strategy about to fail?</p>   
<h2 class="wp-block-heading" id="h-retail-investors-jump-in-did-they-drive-the-crash"><strong>Retail Investors Jump In: Did They Drive the Crash?</strong></h2>   
<p>In the days leading up to this drop, retail investors were significantly active in buying MicroStrategy stock. On one day last week, they bought $42 million worth of MSTR stock, the highest recorded daily purchase. Overall, retail investors purchased over $100 million in MSTR stock last week.</p>   
<p>Interestingly, MicroStrategy saw over $136 billion in trading volume last week, a number much higher than Amazon, a company with a market cap 29 times larger. This surge in activity shows how much retail investors are influencing the stock price.</p>   
<h2 class="wp-block-heading" id="h-just-a-ponzi-scheme">Just a Ponzi Scheme? </h2>   
<p>At present, MicroStrategy holds at least 386,700 Bitcoin tokens, worth nearly $35,764,258,860. However, the total market cap of the company is over 74.95B. This indicates that the company market cap is at least 2.1x higher than the value of its <a href="https://coinpedia.org/news/microstrategy-bitcoin-holdings-may-reach-over-1million-btc-by-2030/" target="_blank" rel="noreferrer noopener">BTC holdings</a>.&nbsp;</p>   
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<p>In the last two months, MicroStrategy’s stock has surged by 113.07%, far outpacing Bitcoin’s 41.19% increase. While this strong performance could indicate that the company’s Bitcoin-focused strategy is working, it also highlights the increased volatility of MicroStrategy’s stock compared to Bitcoin.</p>   
<p> This raises concerns about the risks involved in such a strategy.</p>   
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<h2 class="wp-block-heading" id="h-peter-schiff-s-warning">Peter Schiff’s Warning</h2>   
<p>Peter Schiff has criticized the rapid pace at which MicroStrategy has been buying Bitcoin. The company has already spent $10 billion out of its planned $42 billion Bitcoin purchase. Schiff warns that once the plan is complete, both MicroStrategy and Bitcoin could experience a sharp decline.</p>   
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   https://twitter.com/PeterSchiff/status/1861530779580264846?t=GaMxsZWLKB4dJKMx8wudRQ&amp;s=19 
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<p>Supporters of MicroStrategy’s strategy believe it’s a game-changer, positioning the company for long-term growth. They see the approach as a smart way to bet on Bitcoin’s future value. </p>   
<p>However, critics argue that the strategy is unsustainable and risky, with growing debt and market volatility making it resemble a Ponzi scheme.</p>   
<h2 class="wp-block-heading" id="h-faqs">FAQs</h2>   
<div class="schema-faq wp-block-yoast-faq-block">
 <div class="schema-faq-section" id="faq-question-1732694503950">
  <strong class="schema-faq-question"><strong>Why has MicroStrategy's stock dropped so much?</strong></strong> 
  <p class="schema-faq-answer">MicroStrategy’s stock plummeted over 33% due to investor concerns about its Bitcoin strategy amid market volatility.</p> 
 </div> 
 <div class="schema-faq-section" id="faq-question-1732694514558">
  <strong class="schema-faq-question">How much Bitcoin does MicroStrategy hold?</strong> 
  <p class="schema-faq-answer">MicroStrategy holds around 386,700 Bitcoin, valued at over $35 billion, which is more than double its company market cap.</p> 
 </div> 
 <div class="schema-faq-section" id="faq-question-1732694539918">
  <strong class="schema-faq-question"><strong>Will MicroStrategy’s Bitcoin purchases lead to a market crash?</strong></strong> 
  <p class="schema-faq-answer">Experts warn that MicroStrategy’s aggressive Bitcoin buying strategy could trigger a crash for both BTC and the company if risks escalate.</p> 
 </div> 
</div>

MicroStrategy Stock Crashes 33%: Is Its Bitcoin Strategy Failing?

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