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MicroStrategy’s market capitalization saw its largest four-day drop in history, sparking questions about its position as a leveraged Bitcoin investment vehicle.
The company’s market value fell by over 35% from its Nov. 21 peak, erasing over $30 billion. 
This marked the biggest four-day decline ever for the business intelligence firm, according to the Kobeissi Letter, which <a data-ct-non-breakable="null" href="https://x.com/KobeissiLetter/status/1861518863663268075" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/KobeissiLetter/status/1861518863663268075">highlighted</a> the drop in a Nov. 26 X post:
<blockquote>
 “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.”
</blockquote>
<figure>
 <img alt="MicroStrategy wipes $30B in biggest 4-day drop amid Bitcoin correction" src="https://s3.cointelegraph.com/uploads/2024-11/01936d2a-6f37-72a2-87fc-45a4eb55929f" title="">
 <figcaption style="text-align: center;">
 MSTR/USD, 1-day chart. Source: Cointelegraph/TradingView
 </figcaption>
</figure>
While MicroStrategy’s stock price has since ticked up slightly, it declined along with this week’s Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) correction. MicroStrategy’s price fell 7.5% over the 24 hours leading to 9:52 am UTC on Nov. 27 to trade at $354.10, TradingView data <a data-ct-non-breakable="null" href="https://www.tradingview.com/chart/JBpUV8Q8/?symbol=NASDAQ%3AMSTR" rel="null" target="null" text="null" title="null">showed</a>.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/uk-crypto-ownership-fca-regulations-2026" rel="null" target="null" text="null" title="null">UK cryptocurrency ownership rises to 12% as FCA prepares new regulations</a>
<h2 id="microstrategy-still-a-leveraged-bitcoin-trade">MicroStrategy: Still a leveraged Bitcoin trade?</h2>
The stock’s decline coincided with Bitcoin’s correction after hitting a record high of around $99,800 on Nov. 22.
<figure>
 <img alt="MicroStrategy wipes $30B in biggest 4-day drop amid Bitcoin correction" src="https://s3.cointelegraph.com/uploads/2024-11/01936d2a-1e6a-78cf-b148-f7708ff9ba50" title="">
 <figcaption style="text-align: center;">
 MicroStrategy and Bitcoin, 1-week chart. Source: Cointelegraph/TradingView
 </figcaption>
</figure>
Still, Bitcoin and MicroStrategy have posted robust gains over a wider timeframe. During the past month, Bitcoin rose 44% while MicroStrategy rallied over 32%. On the yearly chart, Bitcoin rose 146% while MicroStrategy is up by more than 599%.
Numerous investors are looking at MicroStrategy as a leveraged bet on the Bitcoin price that is expected to outperform the returns of the world’s first cryptocurrency.&nbsp;
<figure>
 <img alt="MicroStrategy wipes $30B in biggest 4-day drop amid Bitcoin correction" src="https://s3.cointelegraph.com/uploads/2024-11/01936d29-cb31-7790-9a92-016ab135c313" title="">
 <figcaption style="text-align: center;">
 MicroStrategy correction. Source: The Kobeissi Letter
 </figcaption>
</figure>
Still, MicroStrategy’s recent 35% drop — more than <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-92-k-correction-triggered-long-term-hodlers-etfs" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitcoin-92-k-correction-triggered-long-term-hodlers-etfs">four times Bitcoin’s correction</a> — raises concerns about the volatility of its stock as a Bitcoin proxy.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-nears-1m-daily-addresses-price-chases-100k" rel="null" target="null" text="null" title="null">Bitcoin nears 1M daily active addresses as price chases $100K</a>
<h2 id="microstrategy-volatility-caused-by-retail-investors">MicroStrategy volatility caused by retail investors</h2>
This growing volatility is a function of increasingly more retail traders, according to the Kobeissi letter, which wrote:
<blockquote>
 “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.”
</blockquote>
Retail investors bought nearly $100 million worth of MicroStrategy stock during the past week, with growing interest partly driven by the firm’s <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/micro-strategy-to-sell-2-6-b-in-notes-increasing-from-1-75-b-to-fund-bitcoin-purchases" rel="null" target="null" text="null" title="null">$2.6 billion note offering</a>.&nbsp;
<figure>
 <img alt="MicroStrategy wipes $30B in biggest 4-day drop amid Bitcoin correction" src="https://s3.cointelegraph.com/uploads/2024-11/01936d29-6338-7daf-b741-b590133f344a" title="">
 <figcaption style="text-align: center;">
 MicroStrategy class A retail net buys. Source: The Kobeissi Letter
 </figcaption>
</figure>
Some of the world’s largest traditional institutions are investing in <a data-ct-non-breakable="null" href="https://cointelegraph.com/people/top-people-in-crypto-and-blockchain-2022/michael-saylor/" rel="null" target="null" text="null" title="null">Michael Saylor</a>’s company, including Allianz, the second-largest insurance provider in Europe, which acquired over 24% of MicroStrategy’s $600 million note offering in March.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-90k-forecast-crypto-trader-solana-etf-filings-hodlers-digest/" rel="null" target="null" text="null" title="null">Is Bitcoin heading back to $90K? Solana ETFs, and more: Hodler’s Digest, Nov. 17 – 23</a>

MicroStrategy wipes $30B in biggest 4-day drop amid Bitcoin correction

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