Why MicroStrategy Stock Fell 10.5% on Thursday
Shares of MicroStrategy (NASDAQ: MSTR) closed Thursday's trading 10.5% lower. The company had no news of its own but the general market tenor pulled down many skyrocketing stocks today. The S&P 500 market barometer fell 2.4% and the tech-heavy Nasdaq 100 index dropped 3.5%. Only 47 of the S&P 500's five hundred components traded higher on Thursday.
MicroStrategy's correction did not occur in a vacuum. The business intelligence company's stock surged 14% higher on Wednesday, paving the way for a quick haircut the next day. Wednesday's gain was based on rising Bitcoin (CRYPTO: BTC) prices and the announcement that MicroStrategy had deployed another $1 billion in Bitcoin shares. The company now has approximately 90,531 Bitcoins in its treasury, worth roughly $4.4 billion at the cryptocurrency's current price of $49,050 per share. This investment accounts for a large portion of MicroStrategy's total market value of $7 billion, making the stock sensitive to Bitcoin price swings.
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Source Fool.com
