Bitcoin Plunge Spooks Investors as MSTR Stock Hits New Lows
The price of Bitcoin plummeted to below $60,000 this week, resulting in an almost 18% drop. This decline has had a ripple effect on other cryptocurrencies and stocks.
Strategy Inc., also known as MSTR, saw its shares fall by 7% on Friday and another 1% after hours, marking its worst week since November 2022. The company's stock has been tracking the downward trend in Bitcoin prices.
Strategy holds a significant amount of Bitcoin, with a total of 843,738 Bitcoins acquired across 110 separate transactions valued at nearly $64 billion. This makes it the top corporate holder of Bitcoin.
The sell-off was triggered by an announcement earlier this week that Strategy had sold 32 Bitcoins in its first-ever sale since 2022. While the transaction size was modest relative to its total balance sheet, it has spooked crypto investors who fear it could signal future liquidations.