Major

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MSTR

MicroStrategy has experienced its largest four-day market capitalization decline in history, losing over 35% of its value since November 21, equating to more than $30 billion. This significant drop has reignited discussions about its role as a leveraged Bitcoin investment vehicle. 
The Kobeissi Letter <a href="https://x.com/KobeissiLetter/status/1861518863663268075" target="_blank">highlighted</a> this unprecedented drop in a November 26 post on X, sparking questions about the company’s position as a leveraged Bitcoin investment vehicle. 
<figure class="wp-block-image size-full">
 <img decoding="async" width="1747" height="957" src="https://www.cryptotimes.io/wp-content/uploads/2024/11/MSTRUSD-1-day-chart.webp" alt="MSTR Price" class="wp-image-218147" srcset="https://www.cryptotimes.io/wp-content/uploads/2024/11/MSTRUSD-1-day-chart.webp 1747w, https://www.cryptotimes.io/wp-content/uploads/2024/11/MSTRUSD-1-day-chart-420x230.webp 420w, https://www.cryptotimes.io/wp-content/uploads/2024/11/MSTRUSD-1-day-chart-860x471.webp 860w" sizes="(max-width: 1747px) 100vw, 1747px">
 <figcaption class="wp-element-caption">
 MSTR/USD, Source: TradingView
 </figcaption>
</figure> 
MicroStrategy’s market cap fell by $30 billion, with its stock price (MSTR) plunging 35% over four trading days—its biggest drop on record, as noted by the Kobeissi Letter. The stock <a href="https://www.tradingview.com/chart/JBpUV8Q8/?symbol=NASDAQ%3AMSTR" target="_blank" rel="noopener">decline</a> mirrored Bitcoin’s correction after it hit an all-time high of $99,800 on November 22. MSTR fell an additional 7.5% on November 27, trading at $354.10. 
The Kobeissi Letter revealed that retail investors have been increasingly active in trading MicroStrategy stock, purchasing nearly $100 million worth of MSTR in the past week. On November 22, retail buyers spent $42 million on MSTR stock—the highest daily purchase on record. 
Major institutions like Allianz acquired over 24% of MicroStrategy’s $600 million note offering in March, demonstrating continued interest in the company’s Bitcoin-centric strategy. 
<figure class="wp-block-image size-full">
 <img decoding="async" width="1747" height="957" src="https://www.cryptotimes.io/wp-content/uploads/2024/11/MicroStrategy-and-Bitcoin.webp" alt="MicroStrategy and Bitcoin" class="wp-image-218146" srcset="https://www.cryptotimes.io/wp-content/uploads/2024/11/MicroStrategy-and-Bitcoin.webp 1747w, https://www.cryptotimes.io/wp-content/uploads/2024/11/MicroStrategy-and-Bitcoin-420x230.webp 420w, https://www.cryptotimes.io/wp-content/uploads/2024/11/MicroStrategy-and-Bitcoin-860x471.webp 860w" sizes="(max-width: 1747px) 100vw, 1747px">
 <figcaption class="wp-element-caption">
 MicroStrategy and Bitcoin, Source: TradingView
 </figcaption>
</figure> 
Despite the recent correction, both Bitcoin and MicroStrategy have posted strong gains over a broader timeframe. In the past month, Bitcoin has risen 44%, while MicroStrategy’s stock rallied by over 32%. 
On a yearly scale, Bitcoin’s price has surged 146%, whereas MicroStrategy’s stock has skyrocketed by more than 599%, underscoring its leveraged exposure to the cryptocurrency’s performance. MicroStrategy’s $2.6 billion note offering has also fueled investor interest, reinforcing the company’s commitment to its Bitcoin-centric strategy.&nbsp; 
The Kobeissi Letter emphasized the growing volatility of MSTR, noting its 35% drop was over four times <a href="https://www.cryptotimes.io/2024/11/27/bitcoin-enters-correction-phase-should-you-buy-the-dip/" target="_blank" rel="noreferrer noopener">Bitcoin’s correction</a>. The report attributed this to heightened retail interest, raising concerns about MicroStrategy’s role as a Bitcoin proxy. 
As Bitcoin approaches $100K, MicroStrategy’s dual identity as a business intelligence firm and Bitcoin holding vehicle will remain under scrutiny. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/11/25/microstrategy-buys-55500-btc-for-5-4b-largest-in-history/" target="_blank" rel="noreferrer noopener">MicroStrategy Buys 55,500 BTC for $5.4B, largest in history</a> 
</blockquote>

MicroStrategy Loses $30B Amid Bitcoin Correction

The Crypto Times

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