According to the Kobeissi Letter, MicroStrategy experienced the largest market value drop in its history. Analysts from the Kobeissi Letter reported that more than $30 billion was 'erased' from the company's peak value in just four days.
The drop in shares coincided with the correction of bitcoin's market value, which began after the cryptocurrency reached a record high of around $99,800 on November 22.
Experts from the Kobeissi Letter noted that the drop in the company's stock value raises concerns about the volatility of these securities and the overall stability of the business.
"We have all heard that MicroStrategy is a leveraged play on bitcoin. But this is also a whole new level of volatility when bitcoin drops just 9% from its peak, and the company's stock collapses by almost 40%," said the Kobeissi Letter.
The day before, MicroStrategy reported to shareholders and the Securities and Exchange Commission (SEC) about the acquisition of an additional 55,500 BTC for approximately $5.4 billion. Thus, the total number of bitcoins on the company's accounts reached 386,700 BTC.