Shares of MicroStrategy (MSTR) took a hit following its recent $209 million Bitcoin purchase, falling more than 8%. The business intelligence firm led by Michael Saylor made the acquisition just before the start of the Nasdaq trading session on December 30.
Shares fell 5.3% in the first hour, from $318.89 to $302.09, ending the day at $302.96. There was another 3.19% decline in after-hours trading, bringing the price down to $293.59.
MicroStrategy’s Bitcoin buying spree that began on October 31st continued with this purchase, bringing its total BTC holdings to 194,180. To finance the acquisition, the company sold 592,987 shares, raising concerns about its “leveraged” strategy.
That strategy includes using debt and equity to buy more Bitcoin, a move that some critics say could backfire. Trading resource The Kobeissi letter pointed out that MicroStrategy could increase its authorized shares by 10 billion,…
