MicroStrategy (MSTR) Stock Dips 4.38% Amid Bitcoin's (BTC) Market Fluctuations

This movement comes as MicroStrategy co-founder Michael Saylor shared the Bitcoin tracker for the 10th consecutive week on Jan. 12, signaling a potential Bitcoin purchase.

Stock in MicroStrategy Inc. (NASDAQ:MSTR) slid 4.38% in pre-market trading on Monday, as highlighted by Benzinga Pro, amid a backdrop of Bitcoin’s fluctuating market.

This movement follows MicroStrategy co-founder Michael Saylor sharing the Bitcoin tracker for the 10th consecutive week on Jan. 12, indicating a potential Bitcoin purchase. The chart, usually posted by Saylor every Sunday, serves as a key indicator of his company’s ongoing Bitcoin strategy, despite the cryptocurrency’s recent negative trajectory.

At the time of writing, according to Benzinga Pro, Bitcoin was trading at $90,602.06, down 3.78% in the past 24 hours. The key crypto has lost 8.74% of its value in the last 7 days.

Meanwhile, Arthur Hayes, co-founder of BitMEX and Chief Investment Officer at Maelstrom Fund, in an exclusive conversation with Benzinga, criticized the company’s Bitcoin purchasing strategy.

Hayes expressed skepticism about MicroStrategy’s approach of using convertible debt and other fixed-income securities to acquire Bitcoin, especially given the cryptocurrency’s current volatility. He noted that these financial instruments are attractive because of the volatility of both the stock and the Bitcoin they are acquiring.

Bitcoin has surged nearly 50% in the past three months, partly due to Donald Trump’s presidential win, leading to significant volatility in MicroStrategy’s stock, which has jumped 62% during the same period. However, Hayes said that a decrease in Bitcoin’s volatility, potentially following a major crash, could pose challenges for MicroStrategy in attracting interest in its debt offerings.

Hayes further stated he would not trade MicroStrategy’s stock, suggesting there are more efficient ways to invest in Bitcoin, either long or short.

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: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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