Since the company’s shares are linked to the price of Bitcoin, they extend this Tuesday the red that marked the trend on Monday. Over the previous three weeks, MSTR stock posted gains of 57%, 32%, and 25% in consecutive order.
MicroStrategy (MSTR) Stock They plummet this Tuesday, extending Monday’s staggering red (-15.7%). The pullback came alongside a continuation of the slowdown over the weekend in the price of Bitcoinwho lost up to a 2% during the session to trade close to US$67,000.
This Tuesday, the firm announced the completion of an offering of senior convertible notes worth US$603.75 million maturing in 2031, as it had anticipated. Ambit. Following the announcement, the founder of Microstrategy, Michael Taylorannounced that the company acquired 9,245 Bitcoins worth $623 million, using proceeds and excess cash. Now, Saylor’s firm owns 214,246 Bitcoin.
Thus, the shares of the business intelligence company fall this Tuesday before the market opens -11.6%. However, in the last month, accompanied by the rise of Bitcoinhave climbed 114.8% and in the last six months 341.2%.
After Microstrategy announced the sale of its convertible notes, the company completed the offering and used the funds to purchase more bitcoin (BTC). “The aggregate principal amount of notes sold in the offering was $603.75 million, which includes $78.75 million aggregate principal amount of notes issued pursuant to a call option.within a 13-day period beginning on the day the notes are first issued,” the company revealed Tuesday.
Since stocks tied to the price of Bitcoin, such as MicroStrategy, do not trade over the weekend, they may experience serious volatility. after catching up on Bitcoin dynamics over the weekend.
MicroStrategy on Wall Street
MSTR stock moved in contrast, closing at $1,502.76 for the broader market, while the S&P 500 rose about 0.6% and the NASDAQ posted a gain of about 0.8%.
The actions of MicroStrategy climbs 138% so far this year, so this red seems almost insignificant. Over the previous three weeks, MSTR stock posted gains of 57%, 32%, and 25% in consecutive order.
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Depositphotos
However, those optimistic about Bitcoin still have important reasons for optimism. The market is just 30 days away from a halving event where miners receive a 50% reduced reward for mining a new BTC block.
In the past, this has caused a huge spike in BTC price action in the 18 months following a halving event, as it means that miners are selling a drastically reduced amount of Bitcoin on average.
Source: Ambito
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