MicroStrategy's stock is under pressure due to a combination of broader tech sector challenges and a significant drop in Bitcoin's value. The tech-heavy Nasdaq Composite index's recent decline and Bitcoin's 5% drop over the past 24 hours have negatively impacted MicroStrategy, which has heavily invested in the cryptocurrency. The company's recent $101 million Bitcoin purchase further ties its performance to the volatile asset. Additionally, higher-than-expected job openings reported by the U.S. Bureau of Labor Statistics have raised concerns about prolonged high interest rates, creating a challenging environment for speculative assets like Bitcoin. This has contributed to the bearish sentiment surrounding MicroStrategy's stock.
The Defiance Daily Target 1.75x Long MSTR ETF (MSTX) experienced a significant decline, dropping 5.45% to $44.27 at 8:00 AM on Wednesday, January 8.