The stock of serial Bitcoin (BTC) acquirer Strategy (MSTR) has hit a new 52-week low of $219.68 as it falls alongside the price of cryptocurrencies.
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Strategy, formerly known as MicroStrategy, has seen its stock fall nearly 60% from its 52-week high of $542.99 as investors turn increasingly risk averse and move away from cryptocurrencies and stocks related to digital assets. MSTR stock has now declined 30% in the past month.
Strategy has been particularly hard hit by the drop in the price of Bitcoin, which has fallen to $100,000 from an all-time high of just over $126,000 reached at the beginning of October. BTC recently fell below the key support level of $100,000 for the first time since June of this year amid weakening digital assets.
Corporate Holdings
Strategy is the world’s largest corporate holder of Bitcoin and the company’s share price tends to move in tandem with the price of the largest crypto by market capitalization. At the end of October, Strategy owned 640,250 BTC valued at $71 billion.
Strategy acquired its Bitcoin hoard at an average price of just over $74,000 per digital token. While MSTR stock is sliding lower with the decline in crypto prices, it is by no means the only company whose share price is being negatively impacted. Stocks of other crypto firms such as Coinbase Global (COIN) and Robinhood Markets (HOOD) are each down more than 10% in the past month.
Is Bitcoin a Buy?
Most analysts don’t offer ratings or price targets on Bitcoin. So instead, we’ll look at the three-month performance of BTC. As one can see in the chart below, the price of Bitcoin has fallen 11.19% in the last 12 weeks.
