- The stock price of MicroStrategy Incorporated (NASDAQ: MSTR) fell by over 8% pre-market today. This is why it happened.
The stock price of MicroStrategy Incorporated (NASDAQ: MSTR) fell by over 8% pre-market today. There are no company-specific reports or filings that are associated with the decline so it appears there are external factors at play.
In this case, it appears that the activity in cryptocurrencies is causing the decline. Over the past week, the price of Bitcoin fell about 16% and it fell over 2.5% between 12 AM ET and 5:12 AM ET today. Ethereum and Dogecoin also both fell more than 4% today during the same time.
The drop in cryptocurrencies is being driven by uncertainties over the Federal Reserve inching towards tighter monetary policies at a time while inflation is climbing. Plus there are investor fears being caused by the Omicron variant of COVID-19.
MicroStrategy is a business intelligence company that has been buying a large position in Bitcoin. In the company’s most recent quarter, they added nearly 9,000 bitcoins to their holdings. And the company is now the world’s largest publicly traded corporate owner of bitcoin with over 114,000 bitcoins.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.