Bitcoin

<figure> 
 <figcaption>
  Cover image via <a href="https://u.today/">U.Today</a>
 </figcaption> 
</figure>
<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. This is due to 10-for-1 split that was previously <a href="https://u.today/microstrategy-announces-10-for-1-stock-split">announced</a>.&nbsp;</p>
<p dir="ltr">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="bitcoin-yet-to-recover">Bitcoin yet to recover</h2>
<p dir="ltr">MicroStrategy’s stock split 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, the&nbsp;<a href="https://u.today/microstrategy-announces-10-for-1-stock-split">announced</a> 10-for-1 stock split aims 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 the voting rights of shareholders.</p>

MicroStrategy Stock Down 90% in 24 Hours, Here's Why

Table of Contents

U_Today

Other articles published on Aug 8, 2024

Crypto Analysts Predict Explosive Gains for PEPE, Ethereum, and XRP - Don’t Miss These Targets!

Bitcoin Miners Seek New Revenues After Halving

DePIN Projects Capture Major Funding

Blockchain gets down and dirty fighting fraud at California’s DMV

Spot Bitcoin ETF trading volume surges to over $5.5 billion on August 6

Is Michael Saylor’s Massive Bet on Bitcoin a Genius Move or Financial Madness?

Join our free newsletter for daily crypto updates!