MicroStrategy stock tanks with Bitcoin as S&P 500, Nasdaq rally
MSTR touched an intraday low of $513.02 through the early morning session, capping off a 12% decline. Shares of the business intelligence firm collapsed 16.7% on Monday, erasing much of last week’s rally.
By comparison, the broad S&P 500 Index of large-cap stocks rose 1.4% on Monday and the technology-heavy Nasdaq Composite Index climbed 0.8%. Both indices were on track to close higher on Tuesday.
MSTR has played out like a crypto proxy stock ever since CEO Michael Saylor first announced his company’s exposure to Bitcoin. Saylor’s Bitcoin gambit shined a positive spotlight on the crypto industry and contributed to the market’s eye-watering rally between October 2020 and May 2021. As a result, MicroStrategy’s share price peaked at $1,315.00 in February before correcting sharply lower over the next three months.
The cryptocurrency market was nursing heavy losses on Tuesday. With a total market capitalization of $1.3 trillion, cryptos are down more than half from their peak last month.