As Bitcoin blew past $100,000, MicroStrategy’s (MSTR, Financial) stock fell by 4.5%. The company, MicroStrategy, is a crude Bitcoin investor holding in excess of 402,000 BTC, which is equivalent to about $40 billion. Despite Bitcoin reaching a record high, traders opted to sell off cryptocurrency-related stocks like MicroStrategy and Coinbase (COIN, Financial), Which also dropped to 3%.
MicroStrategy’s journey from its main business of developing enterprise software towards an increasingly fervent Bitcoin gambit has proven useful. Its shares have inflated almost fivefold this year, bringing its market value to approximately $90 million. However, the company has lately felt more volatile than the broader market thanks to its sole focus on bitcoin. Such a sharp up and down shows the volatility associated with an investment that makes a company’s performance dependent on bitcoin prices.
Nevertheless, MSTR’s shares have fallen in price due to market conditions, but the company continues to remain positive about Bitcoin, having founder Michael Saylor increase the company’s investment policy exclusively in Bitcoin. The increasing price of Bitcoin fosters consideration of Saylor’s potential crypto-related position under former President Trump.
This article first appeared on GuruFocus.
