MicroStrategy's stock (MSTR) tumbled to a 52-week low of $140.25 on Thursday, reflecting an intraday decline of nearly 10%, as Bitcoin's price fell over 6% to approximately $83,559. The company, which holds over 712,000 Bitcoin, often trades as a proxy for the cryptocurrency, and its shares mirrored the sharp market downturn. The broader tech sector also posted losses, with Microsoft shares dropping over 11%.
The sell-off was triggered by investor fears surrounding massive AI spending reported in tech earnings, which sparked a risk-off sentiment across both crypto and equity markets. "Regardless of the fact that many in the Bitcoin space see Bitcoin as the world’s hardest money and stack Bitcoin regardless of price, the vast majority of the market still sees Bitcoin as a tech trade," noted Timot Lamarre, director of market research at Unchained.
In a related development earlier in the week, MicroStrategy disclosed it had purchased an additional 2,932 BTC for $264 million, funded through an at-the-market (ATM) equity offering program. This acquisition brings the company's total Bitcoin holdings to 712,647 BTC, representing approximately 3.4% of Bitcoin's total 21 million supply. The average purchase price for the latest batch was $90,061 per coin, while the company's overall average cost basis stands at $76,037 per BTC.
The market downturn led to significant liquidations in the crypto derivatives market, with over $822 million in futures positions liquidated in 24 hours, of which $696.8 million were long positions. Bitcoin-specific long liquidations totaled $313.7 million.