MicroStrategy (NASDAQ:MSTR) stock is continuing to fall further on Thursday as the company’s ties to cryptocurrency pull it lower alongside the crash.
The crypto market is currently undergoing a major crash that is seeing anything connected to it take a beating. That includes a wealth of cryptos, as well as a wide variety of companies that do business in the sector.
MicroStrategy isn’t immune to this as the company holds a massive amount of Bitcoin (BTC-USD). Michael Saylor is a Bitcoin whale and he’s shifted MSTR to a company that holds the digital currency. This has it holding Bitcoin worth $2.9 billion on its balance sheet and $4.1 billion at market prices.
Of course, MSTR is feeling the heat for that change now with the crypto crash taking place. This has the company’s CEO trying to ease the fears of investors as shares of its stock continue to retreat lower.
He kept that up today with a tweet arguing in favor of Bitcoin. In it, he notes that BTC has appreciated 149% since the company bought its first coin back in August 2020. This outperforms several other assets and Saylor argues that makes it the best hedge against inflation.
While that sounds good, it isn’t stopping heavy trading of MSTR stock from dragging shares down today. As of this writing, around 1.7 million shares of the stock have changed hands. That’s above its daily average trading volume of about 524,000 shares.
MSTR stock is down 2.4% as of Thursday morning and is down 70.7% since the start of the year.
Investors seeking more stock market news will want to stick around!
We’ve got all the hottest stock news that traders need to know about for Thursday! A few examples include what’s happening with shares of Lordstown Motors (NASDAQ:RIDE) stock, Disney (NYSE:DIS) stock, and Fisker (NYSE:FSR) stock today. You can catch up on all that news at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.