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MicroStrategy Epic Fall: $30 Billion Gone in Just 4 Days

Key Takeaways

  • MicroStrategy’s market cap dropped by over $30 billion in four days, its sharpest decline during Bitcoin’s 9% correction;
  • Retail investors set records, buying nearly $100 million in MicroStrategy stock during an intense week of trading;
  • The 35% stock plunge reveals risks linked to MicroStrategy's Bitcoin-focused investment approach.
MicroStrategy Epic Fall: $30 Billion Gone in Just 4 Days

MicroStrategy experienced a record-breaking drop in market capitalization, shedding more than $30 billion within just four trading sessions.

This drastic decline has sparked discussions surrounding the company's role as a Bitcoin BTC $101,735.32 investment instrument.

Between November 21 and November 27, MicroStrategy's valuation plunged by over 35%, marking its sharpest four-day slide ever.

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On November 26, The Kobeissi Letter spotlighted the decline in a post on X, stating:

MicroStrategy stock, MSTR, just fell a MASSIVE -35% from its peak seen on November 21st. That's ~$30 BILLION of market cap erased in 4 trading days as Bitcoin fell ~9% from its high. This is one $MSTR's largest 4-day drops in history.

Although the company’s stock saw a rebound following the sharp fall, it remained impacted by Bitcoin's price correction. As of 9:52 AM UTC on November 27, MicroStrategy’s share price was $354.10, reflecting a 7.5% dip within 24 hours.

Investors have increasingly viewed MicroStrategy as a high-risk alternative to directly investing in Bitcoin. Its stock performance often mimics Bitcoin’s price movements but with amplified swings.

However, the company's recent 35% collapse—over four times the extent of Bitcoin's correction—has drawn attention to its volatility.

The Kobeissi Letter attributed the increasing volatility to a surge in retail trading activity. The global capital markets analyst stated:

On Wednesday alone last week, retail investors bought ~$42 million worth of MicroStrategy stock, $MSTR. This marked the largest daily retail buy on record and was 8 TIMES higher than the daily average seen in October.

Over the week, retail traders poured close to $100 million into MicroStrategy stock. This enthusiasm is tied to the firm’s $2.6 billion note offering, further fueling interest among investors.

MicroStrategy’s $30 billion drop highlights the unpredictable nature of crypto-driven investments. But this isn’t the only chaos shaking the crypto world—Binance's 5,200 WBTC flash crash has left many questioning the cause. What triggered this dramatic plunge? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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