MicroStrategy shares are down 36% from November high despite continued BTC rally

Shares of software giant MicroStrategy have fallen more than 36% since their November peak despite its commitment to an aggressive Bitcoin accumulation strategy.

Google Finance data shows MSTR shares closed at $302.96 on Dec. 30 after fluctuating between $301.75 and $320.01 throughout the day.

Bitcoin Shares Rally Amid Stock Price Struggles

The closing price was an 8.19% drop from previous levels, with another 3.19% shed in after-hours trading, bringing the stock to as low as 293.59 dollars

However, the biggest drop was seen when comparing MSTR’s high of $473.83, reached on November 20, to its current price, which shows a difference of 36%. The all-time high came as MicroStrategy hit a record $21.8 billion in 24-hour trading volume as it increased its BTC accumulation at a time when the asset broke price records of its own in rapid succession.

The company is currently the largest corporate holder of Bitcoin after acquiring another 2,136 BTC, bringing its stash to an impressive 446,400 BTC, worth an estimated $41.4 billion. However, the continued buying frenzy didn’t seem to have pushed MSTR out of its lethargy, as the stock failed to break above $411 in December.

That said, over longer periods, MicroStrategy has still performed admirably. Over six months, it is up more than 121% and has also gained 342% since last year.

Bitcoin itself has faced a turbulent few weeks, falling to $91,330 shortly after hitting an all-time high of $108,135 on December 17. At the time of writing, the world’s largest cryptocurrency by market cap was trading at $93,800, up just 0.1%. its level yesterday. Over the course of 30 days, it has lost almost 3% of its value, although over the past 12 months, the price reflects an improvement of 121%.

Business movements and market reactions

Interestingly, there seems to be a correlation between MicroStrategy’s BTC buying and repeated market corrections. Each acquisition, usually announced on a Monday, has caused prices to drop, raising questions about the company’s impact on the crypto market.

Critics like gold advocate Peter Schiff claim that the company’s purchases are no longer substantial enough to drive up the cryptocurrency’s price. His comments coincided with BTC losing 15% of its value, following signals from the Federal Reserve’s latest FOMC meeting.

However, led by Chief Executive Michael Saylor, MicroStrategy appears undaunted. His Bitcoin holdings, bought at an average cost of $62,428, now have an unrealized profit of more than $13 billion.

Additionally, a recent announcement of a special meeting of shareholders to propose increasing authorized shares and expanding financial options means the Virginia-based entity is preparing for future growth.

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