Microstrategy continues to buy bitcoin for millions of dollars, fell in price by 50%.


Recently, the shares of many technology companies have fallen in price. In particular, the shares of Tesla. The electric car manufacturer led by Elon Musk, lost about $ 300 billion in capitalization due to the latest drop in the share price. However, from our point of view, this is not terrible for Tesla. And the drop in the share price itself is quite understandable. First, the US government bond yields have been rising recently, leading to some outflow of equity investment into bond investment. Secondly, the competition in the electric car manufacturing industry is growing every year, and other companies also enjoy great interest among investors. Third, at the beginning of the year, Tesla had problems with a shortage of chips and the recall of 158,000 Model S cars due to failing memory modules. Thus, the beginning of the year for Tesla was unsuccessful, but it should be remembered that the shares of this company only a year ago were worth 10 times less. Thus, the fall in their value in recent weeks can be interpreted as a banal correction. Quite another thing is the company Microstrategy, which is actually a software supplier, but in the last year has become world-famous, thanks to a huge investment in bitcoin. The company not only placed excess cash in crypto assets, but also raised more than $ 1 billion to invest in digital gold. Thus, the value of its shares became dependent not on the bitcoin exchange rate, but on the attitude of investors to the fact that the company invests huge amounts in an extremely volatile and risky asset. Starting February 9, when the company's shares set an absolute record value ($1,272), the decline began, which continues to this day and is already about 50%. On the other hand, it cannot be said that the company has suffered any losses in this regard. On the contrary, it was the investments in bitcoin that its shares soared from $ 150 apiece to the current $ 708. Plus, bitcoin continues to grow and continues to bring profit to the company. Thus, neither Tesla nor Microstrategy has yet suffered from the fact that they have linked their activities with bitcoin. It is worth recalling that Tesla invested $ 1.5 billion in bitcoin, but did not report the exact number of coins purchased. Microstrategy currently has 91,064 coins. Experts are also confident that the recovery of the treasury market may negatively affect the bitcoin exchange rate, as some investors may leave this excessively volatile and risky asset. However, at the time of writing, the bitcoin rate continues to be close to its absolute highs.

The material has been provided by InstaForex Company - www.instaforex.com