Michael Saylor’s MicroStrategy fell 35 percent from its November 21 peak – effectively wiping $30 billion worth of market capitalization following a recent Bitcoin dip, global capital markets commentary platform The Kobeissi Letter said in a November 26 X post.
MicroStrategy Lost $30 B In Recent Dip, The Kobeissi Letter Says
According to The Kobeissi Letter’s post on Tuesday, the sharp drop in the MicroStrategy’s value marked the largest four day drop in its history, marking a “whole new level of volatility for the Bitcoin proxy.”
“Bulls will argue that Saylor has transformed the business world and the stock is cheap. Bears will argue that this is a textbook Ponzi scheme and capital is beginning to dry up,” The Kobeissi Letter said. “Can Saylor continue to raise debt here?”
Despite concerns, the Virginia-based software firm’s strategy was up nearly 8 percent on Wednesday.
“$MSTR is a credit default swap on $100+ trillion in 20th-century assets,” Saylor said in a November 27 X post, which had raked up a whopping 16,000 likes by mid-day Wednesday.
Michael Saylor Bets Big On Bitcoin
Saylor, who has led MicroStrategy’s purchase of Bitcoin since it started buying up the token in 2020, has continued to bet big on the cryptocurrency.
On November 21, the company completed a $3 billion offering of convertible notes due in 2029, providing new capital for its ongoing acquisitions of the token.
According to a November 25 8-K filing made with the United States Securities and Exchange Commission, MicroStrategy purchased 55,000 more Bitcoins worth a total of $5.4 billion.
During a recent CNBC interview, Saylor expressed his optimism that MicroStrategy’s success would continue to grow.
“We’re making $500 million a day,” Saylor said. “I’m staring at my screen, and we’re selling dollar bills for $3, sometimes a million times a minute.”
News of the Kobeissi Letter’s commentary comes as Bitcoin begins to once again advance following a retreat from its post-election surge that saw the cryptocurrency nearly cross the $100,000 threshold.
The Satoshi Nakamoto-created token’s value is expected to be bolstered by President-elect Donald Trump’s approach to the blockchain sector as a whole.
The former reality television star, who previously launched his family’s cryptocurrency platform World Liberty Financial, is expected to enact digital asset-friendly crypto regulation upon his return to the Oval Office come January.
Whether or not Bitcoin will surpass $100,000 by then remains to be seen.
The post MicroStrategy Lost $30 Billion in Bitcoin Market Dip appeared first on Cryptonews.
