Why is MicroStrategy nowhere close to its all-time high, unlike bitcoin?
As bitcoin (BTC) surpassed $100,000 and hit an all-time high on December 4, many MicroStrategy (MSTR) investors were hoping for their bags to levitate. Unfortunately, their shares — along with those of the company’s CEO Michael Saylor — dipped considerably the following morning. MicroStrategy is a BTC acquisition company that is primarily valued on a multiple of its BTC holdings. Its shares trade independently of BTC in the market based on sentiment, supply, and demand. MSTR closed at $406 on Wednesday but fell another 4.8% by Thursday. That close logged an embarrassing 28% retracement from the company’s $543 all-time high on the same day that BTC achieved its own peak. Granted, that decline roughly matched BTC’s decline over the same period. However, price tracking doesn’t reassure investors who hope for MSTR’s outperformance. MicroStrategy is supposed to, in the minds of many investors who knowingly bought its shares at a premium m...