Software company MicroStrategy opened down 23% as markets across the board were in the red on Monday.
Michael Saylor’s company was trading at its lowest levels since September 2020 as cryptocurrency prices continue to fall together with broader financial markets.
Shares in the company were trading at $155.80 at the time of writing, after closing at $203.36 on Friday.
MicroStrategy’s massive bet on bitcoin — the company and its entities currently hold 129,218 BTC — has been in the red since May, having fallen below the average purchase price of $30,700. Currently the firm’s bet is sitting on an unrealized loss of almost 20%, along with other prominent bitcoin holders.
Bitcoin was trading at $23,815 at the time of writing, its lowest level since December 2020. Cryptocurrency prices were down as a whole as the global crypto market cap fell below $1 trillion for the first time since January 2021.
Broader financial markets have been rattled by a tough macroeconomic landscape as governments and central banks address rapidly growing inflation, with data last week showing US inflation reached a 41-year high of 8.6%.
This has left most major US stock indexes down year-to-date. The S&P 500 has lost 21%, the Nasdaq Composite is down 30% and the Dow Jones Industrial Average has slipped 16%.
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Source: https://www.theblock.co/post/151621/microstrategy-stock-opens-23-lower-as-crypto-markets-slide?utm_source=rss&utm_medium=rss