Microstrategy stock dipped by 8% following its late-year acquisition of 2,136 BTC worth $209 million. Google Finance revealed that the stock of the firm is down by 8.19% and is going for $302.
The business intelligence firm now holds 446,400 $BTC acquired for $27.9 billion at $62,428 per bitcoin.
The acquisition was made on the second to the last day of the year and was announced by Microstrategy’s Chairman Michael Saylor.
MicroStrategy funded the acquisition of 2,136 BTC by selling 592,987 shares during the same week a financial filling revealed.
Microstrategy’s latest Bitcoin purchase makes it the eighth consecutive week the firm has purchased Bitcoin.
The Bitcoin purchase spree which started on October 31 saw Microstrategy add 194,180 BTC to its holdings.
Microstrategy Stock drops despite BTC Buy
Despite the new acquisition, Microstrategy stocks dipped by 8% following the buy raising speculation and analysis of the firm’s Bitcoin activity.
Several analysts have hinted at what they called Microstrategy’s “Hyperbitcionization” and how that may not end well for the firm and its shareholders.
Felix Hartmann, the managing partner of Hartmann Capital explained why he thinks Microstrategy’s Bitcoin investment might lead to the company going bankrupt.
“Within 5 years, MSTR will first become a top 5 company by market cap before eventually going bankrupt. We’re still early.” Hartman said.
Unchained head of market research Joe Burnett called MicroStrategy’s current strategy “hyperbitcoinization.” saying that the firm trades at a premium so it can grow its Bitcoin-per-share through leverage.
Microstrategy added to Nasdaq 100 Index
On Dec. 23, MicroStrategy was added to the Nasdaq-100 index.
This means that the Business intelligence firm is now among Nasdaq’s 100 largest stocks by market capitalization.
MicroStrategy was one of three companies to be added to the index alongside Palantir Technologies Inc. (PLTR) and Axon Enterprise, Inc. (AXON), according to a Dec. 13 statement published by Nasdaq.
The Business intelligence firm got its start on Bitcoin Acquisition in 2020 during the lockdown and has gone on to acquire 446,400 BTC since then.
