MicroStrategy Crashes 7% Amid Slow Bitcoin Purchases

The precise strategyMSTR, financial) The stock lost about 7% on Monday as the company reported a decline in weekly Bitcoin purchases. The company, which owns a large amount of Bitcoin, purchased $209 million worth of the cryptocurrency between December 23 and Sunday and has 446,400 Bitcoin worth about $41.4 billion. It’s the eighth week in a row that MicroStrategy has bought fewer bitcoins, even though the average price per coin is now $97,837.

The company still operates as a software company, but its reputation is largely tied to its investments in Bitcoin. Sales were down for the week, including a $2.1 billion purchase earlier in the month and a $561 million purchase the week before. Bitcoin purchases have declined, indicating that the company is uncertain about the future of the cryptocurrency.

There could be several reasons behind this. Companies that cannot simply change ownership of Bitcoin (even at the current high price of $92,678) may struggle to keep up the pace as competition intensifies on a global scale in this emerging cryptocurrency market. The little-known successful presence of a Bitcoin proponent also makes a mistake that MicroStrategy may succumb to its merciless feelings about Bitcoin, clearly after the fact that the price of Bitcoin has doubled since this year. Investors are looking closely at these developments, with a significant correlation between MicroStrategy share price performance and Bitcoin prices.

MicroStrategy’s dynamic on what to do with Bitcoins will be watched by the market as the volatility of Bitcoin assets continues to play a role in the strategy.

This article first appeared on Gorovox.