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
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.
