MicroStrategy Share Price Plunges As MSTR’s Bitcoin Holdings Lose Another $400 Million As BTC Price Crashes

by James · November 9, 2022

MicroStrategy Share Price Plunges As MSTR’s Bitcoin Holdings Lose Another 0 Million As BTC Price Crashes

bitcoin on balance — The FTX crisis sends the crypto market into turmoil, MicroStrategy loses 20% of its value in a day. Photo – Getty Images

Cryptocurrency crash seems to be paving a path to doom for the entire industry.

Bitcoin (BTC) miner and business intelligence company MicroStrategy (MSTR) is no exception, its share price fell around 20% in one day.

Other companies in the arena also saw a similar result, with crypto exchange Coinbase (COIN) and fellow bitcoin miner Riot Blockchain (RIOT) also seeing their share values lower by more than 10%.

Table of Contents

Bitcoin vs US Dollar Chart (BTC/USD)

MicroStrategy (MSTR) was a pioneer in being one of the first US institutions to shift its portfolio to cryptocurrency. It is now the largest publicly traded company that owns Bitcoin, it owns 130,000 BTC, which is around 0.62% of all circulating BTC.

It accumulated its Bitcoin (BTC) collection over a series of market falls as reported by Finbold with its former CEO Michael Sayler believing the digital asset is a valuable store of value and its ability to hedge against inflation is “second to none “

What is your sentiment on BTC/USD?

Vote to see traders’ feelings!

MicroStrategy (MSTR) Price Chart

The cryptocurrency market has been volatile in recent sessions. With large crypto exchange, FTX could potentially face solvency.

Despite this, the current CEO of MicroStrategy, Phong Le, seems to have the same confidence in BTC as his predecessor.

In a recent earnings call, Le stated:

“We have not sold any Bitcoin to date. To reiterate our strategy, we seek to acquire and hold Bitcoin for the long term. And we currently do not plan to engage in the sale of Bitcoin. We have a long-term time horizon and our core business is not affected of the short-term Bitcoin price fluctuations.”

Coinbase (COIN) Price Chart

Is he right to hold out hope for the currency?

One of the biggest changes that has occurred in the digital asset industry is in terms of regulatory oversight. Globally, governments have begun to implement better practice requirements when it comes to cryptocurrencies.

President Joe Biden issued an executive order in September 2022 to ensure responsible development of digital assets, this requires agencies to develop frameworks and policy development to support implications for consumers and investors.

Since its inception in 2009, BTC and other cryptocurrencies have seen impressive returns. In a study by KPMG, they found that 58% of their respondents, which include family offices and high net worth individuals, are currently investing in digital currencies. Their goal is to capture an upside potential beyond what traditional financial instruments have been able to provide.

However, the report states that “market volatility in 2022 may have an impact on clients’ investment outlook and priorities going forward. As such, clients and private wealth management institutions will need to carefully assess current market conditions with respect to digital asset portfolio management.”

Regarding bitcoin specifically, Mike McGlone – BI Senior Commodity Strategist at Bloomberg believes that it remains a risky asset.

“The benchmark crypto, which is well on its way to becoming a digital store of value, remains in a price discovery mode and is a risk asset, rising with the stock flow. Bitcoin will face initial headwinds if the stock market falls, but to the extent that falling stock prices push bond yields and stimulate more central bank liquidity, crypto may emerge as a primary beneficiary.”