MicroStrategy's stock is experiencing significant downward pressure, primarily due to a combination of factors affecting its core asset, Bitcoin. As of December 30, 2024, Bitcoin prices have seen a notable decline, trading around $92,500, down from recent highs of approximately $99,000 and an all-time high of $108,000 set two weeks ago. This drop in Bitcoin's value is impacting MicroStrategy, which has heavily invested in the cryptocurrency, recently purchasing an additional 2,138 bitcoins for $209 million. The company's aggressive acquisition strategy, part of its "21/21" plan, involves raising capital through share sales to fund Bitcoin purchases, which has contributed to the stock's volatility.
MicroStrategy's recent inclusion in the Nasdaq-100 Index has not shielded it from the market's bearish sentiment. The stock has plummeted approximately 30% since the announcement, with a peak-to-trough drop of 45% over the past five weeks. Despite the company's substantial Bitcoin holdings, the negative divergence between Bitcoin's price movements and MicroStrategy's stock performance has raised concerns among investors. The stock's decline is further exacerbated by profit-taking activities and the broader market's cautious stance towards high-risk assets amid fluctuating cryptocurrency prices.
The ETF Opportunities Trust T-Rex 2X Long MSTR Daily Target ETF (MSTU) is currently priced at $8.99, reflecting a 10.05% decrease from its previous close.