- MicroStrategy sees its largest-ever four-day market cap drop, losing $30 billion.
- Stock fell 35% from its November 21 peak, quadrupling Bitcoin’s 7% correction.
- Retail investors drove volatility, buying $100M in stock during the week.
- Despite short-term losses, MicroStrategy has gained over 599% on the year.
MicroStrategy, a company known for its bold Bitcoin investments, just experienced its steepest four-day market cap drop in history. Amid a Bitcoin correction, the firm lost over $30 billion in market value, with its stock plunging by 35% from its peak on November 21.
This massive dip, highlighted by The Kobeissi Letter, has raised concerns about MicroStrategy’s volatility as a Bitcoin proxy — and how retail investors may be amplifying its wild price swings.
A Historic $30 Billion Drop
Between November 21 and November 26, MicroStrategy’s stock (MSTR) fell dramatically, erasing more than $30 billion in market value. On November 27, TradingView data showed MSTR trading at $354.1, down 7.5% in just 24 hours.
https://twitter.com/EricBalchunas/status/1861158223979454468
The decline mirrored Bitcoin’s correction after it hit an all-time high of nearly $99,800 on November 22. Since that peak, Bitcoin has dropped over 7%, while MicroStrategy’s stock price has fallen by more than 14%.
This discrepancy in losses highlights the added risk of investing in MicroStrategy as a Bitcoin play. The stock’s correction has been over four times steeper than Bitcoin’s, prompting questions about the firm’s growing volatility.
A Long-Term Success Story
Despite the dramatic short-term drop, MicroStrategy and Bitcoin have delivered robust gains on a broader timeframe. Over the past year, Bitcoin has risen 146%, while MicroStrategy has soared by a staggering 599%.
https://twitter.com/nw3/status/1861496625002107302
On a monthly scale, Bitcoin posted a 44% gain, while MicroStrategy rallied 32%. These figures show that while the stock is prone to sharp corrections, it has been a high-performing Bitcoin proxy for long-term investors.
However, the recent 35% correction raises concerns about whether retail enthusiasm is driving unsustainable volatility.
Retail Investors Drive Market Turbulence
According to The Kobeissi Letter, retail investors have been a significant factor in MicroStrategy’s volatility. On November 22 alone, retail traders purchased $42 million worth of MSTR, marking the largest daily retail buy ever recorded. Over the past week, retail investors poured nearly $100 million into the stock.
This surge in interest coincided with MicroStrategy’s $2.6 billion note offering, drawing attention from both retail traders and major institutional investors. Allianz, Europe’s second-largest insurance provider, acquired 24% of MicroStrategy’s $600 million note offering earlier this year.
