MicroStrategy (MSTR), traded on Nasdaq, is known for its Bitcoin (BTC) 
$98,412 investments. Recently, however, investors appear less focused on the rising price of MSTR shares, with market expectations becoming more cautious. Over the past three weeks, MSTR’s 250-day put-call score has risen from -20% to zero. This metric indicates that investors are now concentrating more on downside risks rather than price increases, as the premiums for previously high call options have equalized with put options.
MicroStrategy’s Shares Plummet
MicroStrategy’s shares surged to $589 on November 21, but have since lost 44%, currently trading at $289. This decline includes a staggering 34% drop over just the last two weeks.
According to TradingView data, this loss linked to Bitcoin has weakened investors’ tendencies to view MSTR as a leveraged investment vehicle for cryptocurrencies. Markus Thielen, founder of 10x Research, noted, “MicroStrategy’s 346% gain in 2024 far outpaced Bitcoin’s 121% rise. However, currently, Bitcoin’s purchase price is seen as significantly more attractive than buying MSTR.”
MicroStrategy’s Bitcoin Investment Strategy Loses Appeal
Since starting Bitcoin purchases in 2020, MicroStrategy has amassed 446,400 BTC, worth approximately $42.6 billion, primarily through borrowing. Yet, interest in MicroStrategy’s investment strategy appears to be waning. This is attributed to investors’ reluctance to incur additional costs by purchasing MSTR instead of directly acquiring Bitcoin.
Thielen warned that the decline in MicroStrategy’s stock, despite increased Bitcoin purchases, suggests there is still no strong narrative for the company’s future.
