MicroStrategy, a company that develops Bitcoin technology, has seen its stock price plummet by almost 40% from its all-time high of $540 per share. Despite this decline, the company is still up 416% year-to-date, driven by strong demand for its shares among retail investors.
On November 20, retail investors bought an unprecedented amount of MicroStrategy common stock, worth nearly $42 million, according to The Kobeissi Letter. This was the largest daily retail buy on record and marked a significant increase in trading volume compared to previous periods.
However, following a short report from Citron Research on November 21, the company’s stock price dropped sharply, coinciding with Bitcoin’s decline by almost 10% to $90,000. As a result, MicroStrategy’s net asset value premium has fallen to around 2.09, its lowest level since September.
The company’s trading volume last week was an astonishing $136 billion, significantly higher than the peak of GameStop Mania or Amazon’s trading volumes during that period. According to James Van Straten, a senior analyst at CoinDesk, MicroStrategy’s trading activity is unprecedented and highlights the growing interest in Bitcoin and other digital assets.
The recent market move has left retail investors caught off guard, with many now facing significant losses. As a result, it is essential for investors to closely monitor the company’s performance and adjust their strategies accordingly.
Source: https://www.coindesk.com/markets/2024/11/27/micro-strategy-retail-investors-caught-out-on-the-wrong-side-of-mstr-trade