Bitcoin

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<p dir="ltr">The shares of MicroStrategy, one of the largest corporate holders of Bitcoin (BTC), lost 90% of their value within a 24-hour time frame. At press time, MicroStrategy’s stock is&nbsp;<a href="https://www.google.com/finance/quote/MSTR:NASDAQ?sa=X&amp;ved=2ahUKEwjvis_cl-WHAxXuWEEAHeeLDe4Q3ecFegQIPxAf">trading</a> at $124.69, demonstrating over an 81% decrease year-to-date (YTD).</p>
<h2 id="what-s-causing-microstrategy-s-loss">What's causing MicroStrategy's loss</h2>
<p dir="ltr">The 90% loss in MicroStrategy’s stock coincides with recent volatility in the Bitcoin market. Although the leading cryptocurrency increased slightly by 0.5% in the past day, it is still down by over 11% on the weekly time frame.</p>
<p dir="ltr">MicroStrategy has a multi-billion dollar stake in Bitcoin. Michael Saylor, MicroStrategy’s chairman and co-founder, disclosed in an earlier&nbsp;<a href="https://u.today/microstrategys-bitcoin-holdings-keep-surging">U.Today report</a> that the company's Bitcoin stash now amounts to 226,500 BTC. Notably, the company began purchasing BTC in 2020 and has not looked back. MicroStrategy recently funded its Bitcoin acquisition with a&nbsp;<a href="https://u.today/microstrategys-notes-offering-to-buy-bitcoin-sees-surprising-twist">$700 million convertible senior notes</a> raised from investors with a five-year maturity.</p>
<p dir="ltr">Meanwhile, Bitcoin is yet to reclaim its previous highs after trading in the $49,000 range last week, contributing to the decline in MicroStrategy’s stock. As of this writing, BTC is trading at $57,389, with trading volume declining by 9.9% to $39.9 billion.</p>
<p dir="ltr">Even though MicroStrategy offers other services, analysts believe its stake in Bitcoin can impact the price of its stock. Popular crypto critic Peter Schiff&nbsp;<a href="https://u.today/microstrategy-and-blackrock-will-sell-their-bitcoin-peter-schiff-believes">said</a> the firm will be forced to sell its Bitcoin holdings by its creditors. According to him, losses in Bitcoin are inevitable, because the cryptocurrency is worthless.</p>
<h2 id="microstrategy-s-efforts-to-boost-liquidity">MicroStrategy's efforts to boost liquidity</h2>
<p dir="ltr">Despite ongoing challenges, MicroStrategy has&nbsp;<a href="https://u.today/microstrategy-announces-10-for-1-stock-split">announced</a> its 10-for-1 stock split to boost accessibility and liquidation for users. The stock split, which took effect Aug. 1, will allow each holder of MSTR Class A stock to receive nine additional shares in the same class.</p>
<p dir="ltr">Likewise, the same allocation holds for holders of Class B shares. MicroStrategy emphasized that the stock split will not impact voting rights of shareholders.</p>

MicroStrategy Just Lost 90% in 24 Hours, Here's Likely Reason

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