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Shares of Micro Strategy, Bitcoin’s largest institutional investor, fell about 50% in 17 days


Recent market data show that the value of microstrate stock has fallen by more than 50% in the last 17 days. It is worth noting that Micro Strategy currently has more than 91,000 units of bitcoin.

to the the report Coin Telegraph, it’s not just bitcoin users and small investors who are losing out on sharp bitcoin price fluctuations.

Shares of the company hit a low of $ 628 as Micro Strategy confirmed it was adding 210 bitcoins ($ 10 million) to its coffers. Microstrate shares peaked at $ 1,300 in February.

Shares of Micro Strategy, Bitcoin's largest institutional investor, fell about 50% in 17 days

Many believe that microstrate stock price fluctuations are related to the increase in bitcoin price fluctuations that we have seen many times during the recent uptrend.

However, the role of bitcoin in increasing the value of microstrate shares should not be overlooked. Prior to August 2020, when the bitcoin microstructure was added to its balance sheets, the company traded in the $ 100 range.

“Anthony Pompliano, the founder of Morgan Creek Digital, said about the recent acquisition of bitcoin by Microstrategy:

They now have 91,064 bitcoins in their balance sheets. This is perhaps one of the greatest examples of strong belief in the history of public markets.

It can be said that this firm belief in microstrategy, at the same time as the bitcoin cycle began to rise and the traditional markets were challenged, brought him great benefits in the short and even medium term.

Arthur Hayes, former CEO of BitMEX, has previously said that central bank policies, at their most extreme, could cause all capital outflows from the digital currency market at once.

Hess wrote in a blog post a few days ago that it is possible that central banks will raise interest rates sharply. According to Hess, this could hurt investors and increase volatility. He wrote about this:

I do not have a model for estimating the rate between the two, but at a high level, if Fiat liquidity can once again make a significant profit through government bonds, it will outperform bitcoins / digital currencies.

The main purpose of this work is to maintain / grow purchasing power against energy. If this is done for assets with the highest liquidity, such as government bonds, then liquidity will be the easiest option.

assets

In the event of such an event in the future, Bitcoin will rely more on its technological side, which Hess thinks will undoubtedly be exhausting without the huge capital. “Hess said, ‘

Estimating the remaining bitcoin value is technologically beyond my skills. However, this figure is much lower than the current price of Bitcoin in terms of Fiat currencies.

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