Shares of MicroStrategy, Bitcoin’s largest institutional investor, fell about 50% in 17 days

New market data show that the value of MicroStrategy shares has fallen by more than 50% in the last 17 days. It is worth noting that Micro Strategy currently has more than 91,000 units of bitcoin.

According to the Coin Telegraph, it is not just bitcoin users and micro-investors who are losing out on drastic Bitcoin price adjustments.

While MicroStrategy confirmed that it was adding 210 bitcoins ($ 10 million) to its coffers, the company’s stock hit a low of $ 628. Shares of MicroStrategy peaked at $ 1,300 in February.

Many believe that MicroStrategy stock price fluctuations are related to the increase in bitcoin price fluctuations that we have seen many times during the recent uptrend.

However, the role of Bitcoin in increasing the value of MicroStrategy shares should not be overlooked. Prior to August 2020, when MicroStrategy added bitcoins to its balance sheets, the company traded in the $ 100 range.

Anthony Pompliano, founder of Morgan Creek Digital, commented on MicroStrategy’s recent acquisition of Bitcoin:

They now have 91,064 bitcoins in their balance sheets. This is perhaps one of the greatest examples of strong belief in the history of public markets.

It can be said that MicroStrategy’s firm belief, along with the beginning of Bitcoin’s uptrend and the challenge of traditional markets, has been of great benefit to him in the short and even medium term.

Arthur Hayes, former CEO of BitMEX Exchange, has previously said that central bank policies, at their most extreme, could cause all capital outflows from the cryptocurrency market.

In a blog post a few days ago, Hess wrote that it is possible that central banks will raise interest rates sharply. According to Hess, this could hurt investors and increase volatility. He wrote about this:

I do not have a model for estimating the rate between the two, but at a high level, if Fiat liquidity can make a significant profit again through government bonds, it will outperform bitcoin / cryptocurrencies.

The main purpose of this work is to maintain / grow purchasing power against energy. If this is done for assets with the highest liquidity, such as government bonds, then liquidity will be the easiest option.

In the event of such an event in the future, Bitcoin will rely more on its technological side, which Hess thinks will undoubtedly be exhausting without the huge capital. “This,” Hess said.

Estimating the remaining bitcoin value is technologically beyond my skills. However, this figure is much lower than the current price of Bitcoin in terms of Fiat currencies.

Shares of MicroStrategy, Bitcoin’s largest institutional investor, fell about 50% in 17 days