MicroStrategy Stock Tumbles On Weekly Bitcoin Buy Despite Joining Nasdaq 100: Retail Sentiment Divided

Shares of MicroStrategy were down over 4% as markets opened on Monday after the Michael Saylor-owned software enterprise announced its weekly Bitcoin buy, this time of over 5,000 BTC for around $561 million. 

The company also joined the Nasdaq 100 today.

MicroStrategy has been buying Bitcoin every week since Nov. 11. This is the company’s smallest haul thus far in that period, far below the record-breaking acquisition of over 55,000 BTC on Nov. 24 — the company’s largest single purchase to date.

Its treasury now holds 444,262 BTC, valued at approximately $42 billion, which accounts for nearly half of its market capitalization. 

The latest acquisition was funded by share sales under the company's at-the-market program (ATM). The company still has$7.08 billion left on the ATM program.

MicroStrategy's Bitcoin Purchases Over The Last Seven Weeks | Source: BitcoinTreasuries

Analysts view MSTR’s stock as a high-risk, high-reward investment since its performance depends heavily on Bitcoin's price trajectory.

Currently, Bitcoin is down nearly 1% in the last 24 hours, trading around $95,000 — far below its record high of $108,268 last week. 

While the company's strategy of accumulating Bitcoin as a corporate treasury asset continues to attract attention, retail sentiment is getting a little nervous. 

MicroStrategy Sentiment and Message Volume on Dec 23 as of 9:30 a.m. ET | Source: Stocktwits

Chatter around the stock remained ‘low’ given the holiday week, but sentiment on Stocktwits was also subdued in the ‘neutral’ zone.

With President-elect Donald Trump’s crypto-friendly narrative and the appointment of pro-crypto individuals to his cabinet, some users believe the price of Bitcoin and MicroStrategy is likely to pump back up. Others are more skeptical. 

According to a poll conducted on Stocktwits, most users feel the stock's price has bottomed out, but one-fifth see it dipping below $250 before a rebound.

Stocktwits Poll On "Where Will MSTR's Bottom Out In This Correction" (Nov. 23) | Source: Stocktwits

MicroStrategy's addition to the Nasdaq 100 places it among 100 of the largest non-financial companies listed on Nasdaq. 

This inclusion will likely trigger automatic buying from exchange-traded funds (ETFs), including the Invesco QQQ Trust, which manages over $325 billion in assets. 

Despite the recent slide, MicroStrategy’s stock has gained over 400% so far this year, putting it among the top performing stocks of 2024.

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