MicroStrategy Slides 46% From November Peak as Bitcoin Funding Strategy Draws Skepticism
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MicroStrategy’s stock has dropped below $300, a 46% decline from its November peak, amid mounting questions over the company’s plan to raise billions for additional Bitcoin acquisitions.
While MSTR is still up 342% this year – buoyed by Bitcoin’s 121% rise – it has steadily fallen from an intraday high of $543 on November 21.
Despite recently adding 2,138 BTC to its treasury for a total of 446,400 BTC and securing a spot in the Nasdaq 100, MicroStrategy faces uncertainty around its “21/21” strategy, which involves raising $42 billion through a mix of equity and fixed-income offerings.
The firm also proposed expanding its Class A common shares by $10 billion and preferred shares by $1 billion, sparking concerns over potential shareholder dilution.
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Some analysts point out that if MicroStrategy continues its aggressive BTC purchases, existing shareholders risk being diluted. Conversely, any hesitation could undermine the company’s identity, which is heavily tied to Bitcoin’s performance – particularly at a time when Bitcoin’s rally may be cooling.
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