Why MicroStrategy Stock Plunged on Monday
Shares of MicroStrategy (NASDAQ: MSTR) plunged on Monday, and it's all because of popular cryptocurrency bitcoin. Of course, I should say bitcoin wasn't very popular over the weekend, having plummeted more than 20% from all-time highs reached last week. And since MicroStrategy holds thousands of bitcoin tokens on its balance sheet, bitcoin's decline directly lessens MicroStrategy's value, which is why the stock was down 8% as of 11 a.m. EST.
Here's what could be negatively impacting the price of bitcoin over the last couple days. Over the weekend, British newspaper The Times noted that HSBC won't process transfers from cryptocurrency exchanges anymore. Let's say someone has an account with a crypto exchange and has large (but unrecognized) gains in bitcoin. They won't be able to convert that into fiat currency through HSBC. That's a big deal if someone bought bitcoin as an investment.
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Source Fool.com
