Mike

Citron

Galaxy

Bitcoin

MSTR

According to Google Finance data, MicroStrategy shares have dropped to ~$353, down 34% from Nov. 21st’s high of ~$535. The decline began with a 15% drop to $453, a 13% reversal from a few hours earlier.&nbsp; 
The business intelligence firm, however, revealed that it had accumulated over 55K BTC worth $5.4B between Nov. 18th and Nov. 24th. The purchase brought its total Bitcoin holding to over 386 K, estimated at $21.9B. Bernstein predicted that MicroStrategy’s relentless capital-raising and BTC acquisition efforts would see the company own nearly 4% of the global BTC supply.&nbsp; 
<h3 id="span-style-font-weight-400-microstrategy-stock-records-poor-performance-span">MicroStrategy stock records poor performance&nbsp;</h3> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 WOW. 
 MicroStrategy stock, <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">$MSTR</a>, just fell a MASSIVE -35% from its peak seen on November 21st. 
 That's ~$30 BILLION of market cap erased in 4 trading days as <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#Bitcoin</a> fell ~9% from its high. 
 This is one <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">$MSTR</a>'s largest 4-day drops in history. 
 What just happened? 
 (a thread) 
 — The Kobeissi Letter (@KobeissiLetter) <a href="https://twitter.com/KobeissiLetter/status/1861518863663268075?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">November 26, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
MSTR’s five-day poor performance, characterized by a sharp stock value decline, wiped nearly $30B off the company’s market cap in four days, according to Kobeissi. MSTR’s price <a href="https://www.google.com/finance/quote/BTC-USD?window=5D" rel="nofollow noopener" target="_blank">fell</a> nearly seven times that of Bitcoin, which lost slightly more than 5% over the same five-day period. However, leading Wall Street analysts were revising their price target predictions after the recent MicroStrategy’s massive BTC acquisition.&nbsp; 
Analysts Gautam Chhugani (Bernstein) and Mark Palmer (Benchmark) raised their predictions to over $600, describing the company’s strategy as ‘unprecedented’ on Wall Street. TD Cowen analysts estimated that MicroStrategy’s BTC holding could be worth over $100 billion by the end of FY27.&nbsp; 
MicroStrategy’s focus on Bitcoin has also raised questions. Critics argue that investors could gain directly from BTC through ETFs instead of investing in the premium-priced MSTR stock. 
<blockquote>
 “We believe those who raise such criticisms are giving short shrift to the shareholder value [MicroStrategy] has been creating through its treasury operations, i.e., its repeated tapping of the capital markets to raise proceeds to fuel the addition of bitcoins to its sizable holdings.” 
 –<a href="https://www.marketwatch.com/story/wall-street-analyst-slaps-the-highest-microstrategy-stock-price-target-yet-heres-why-f5ba882e" rel="nofollow noopener" target="_blank">Mark Palmer</a>
</blockquote> 
As MicroStrategy continues to build what some analysts call a ‘Bitcoin Bank,’ the company’s boss, Michael Saylor, predicted that Bitcoin may rise to $13 million by 2045. He added that the company’s total BTC holding could potentially increase in value to reach trillions.&nbsp; 
<h3 id="span-style-font-weight-400-novogratz-warns-of-a-looming-bitcoin-correction-mostly-affecting-btc-related-stocks-span">Novogratz warns of a looming Bitcoin correction mostly affecting BTC-related stocks</h3> 
MSTR’s exponential rise has <a href="https://www.investopedia.com/microstrategy-buys-usd5-4b-of-bitcoin-in-past-week-stock-falls-8750958" rel="nofollow noopener" target="_blank">caused</a> anxiety among some investors, and short-sellers have put it on their radar. Mike Novogratz, Galaxy Digital CEO, expected a sharper correction in Bitcoin-related stocks like MSTR than in Bitcoin itself.&nbsp; 
A Citron Research spokesperson added that while CR was bullish on MicroStrategy’s stock, it only opened a short position on MSTR as a hedge because it considered the shares overheated. 
On the other hand, Michael Saylor’s firm revealed that the once-software company now makes over $500 million per day. Putting things into perspective, MicroStrategy’s stock <a href="https://finance.yahoo.com/news/michael-saylor-reveals-microstrategy-making-210031450.html" rel="nofollow noopener" target="_blank">gained</a> 97% in the last month against Bitcoin’s 47%. The stock also gained 515% YTD, while Bitcoin rose 122% over the same period. Saylor claimed that MicroStrategy was likely the most profitable company in the U.S. right now.&nbsp; 
Saylor also criticized Warren Buffet for holding over $325 billion in cash at Berkshire Hathaway instead of investing it in Bitcoin. 
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MicroStrategy stock, $MSTR, just fell a massive -35% from its peak on November 21st

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