MicroStrategy Shares Plummet After Missing Earnings and Bitcoin Price Decline

MicroStrategy’s Shares Plummet After Missing Earnings Report

In a dramatic turn of events, MicroStrategy’s shares took a nosedive on Tuesday after the company reported missing on earnings. The price of bitcoin also played a role in the sharp decline, with MicroStrategy’s shares dropping by as much as 17% before making a slight recovery.

At one point during the trading day, MicroStrategy was down 15.8%, trading at $1,086 as of 1:45 p.m. ET, according to Yahoo Finance. This is not the first time the company has faced a significant drop in its share price, as just last month, shares fell by as much as 16%.

While other U.S. crypto stocks like Coinbase, Marathon Digital, and Riot Platforms didn’t experience as large of a selloff, all three companies saw their shares decline in midday trading. Coinbase saw a 6% drop, while Marathon Digital and Riot Platforms dropped 9% and 7%, respectively.

The volatility in the market has been particularly evident in the mining sector, with companies like CleanSpark, Bitfarms, and Hut 8 also experiencing decreases in their stock value. CleanSpark fell by 9%, while Bitfarms and Hut 8 shed 6% and 5%, respectively.

MicroStrategy’s main strategy for creating long-term value is by accumulating bitcoin, making its shares a proxy for the cryptocurrency. However, with bitcoin trading down 4.5% at $60,093 at the time of publication, the company’s shares took a hit in after-hours trading.

Despite the recent setbacks, MicroStrategy and other crypto-related companies have been enjoying an overall upward trend in their stock prices, thanks in part to bitcoin reaching new all-time highs. It remains to be seen how these companies will navigate the volatile market in the coming days.