MicroStrategy stock fell to more than $300 in the after-hours session on December 30. Can MicroStrategy slowly lose heat?

MicroStrategy (MSTR) stock is down 46% from its all-time high in November. This comes as the company seeks to increase its shares by billions of dollars to support its financing strategy 42 billion dollars.

according to Google Finance According to statistics, the company's shares declined for the second day in a row, and the price level reached a low of $302.96, which means an 8.2% loss in the value of the stock. Late-hour trading resulted in a further three percent drop in the stock price to $293.59.

Last week, MSTR acquired 2,138 BTC, increasing the total amount to 446,400 Bitcoin. In addition, its shares were added to the Nasdaq 100 Index on December 23, after which its shares rose by 402%.

However, since the intraday high was reached on November 21 at $543, the MSTR has been in a downtrend. However, this fact does not detract from the fact that the company has recorded 342% growth for the year so far due to its aggressive Bitcoin accumulation strategy (Bitcoin) carried out by MSTR along with a massive 121% price rise of the cryptocurrency.

Is MicroStrategy losing momentum?

MSTR's BTC pooling approach has been challenged Martin Shkreliwho co-founded the hedge fund Elea Capital. He called Michael Saylor An “overzealous” and “unreliable” supporter of BTC. “The worst vote I've ever seen in the history of proxy voting,” he said, referring to the vote by MSTR shareholders Bitcoin vault The allocation received just 0.5% support on December 24. Shkreli said market sentiment has changed and that it is "a bit difficult now to see the bullish case" for Bitcoin's price, implying that Saylor's aggressive multibillion-dollar purchases have underperformed.

Markets appear to be concerned about the potential approval to increase the number of authorized shares by 10 billion.

The total quota could rise from 330 million to 10.33 billion if approved.

The problem is that it has left the company in a "lose-lose" situation for the time being. pic.twitter.com/CcNr8Etebj

- Al Qubaisi Letter (@KobeissiLetter) December 30, 2024

This is not the first time the company has faced criticism. Some analysts, including Kobbeissi Letter and Jacob King, believe MicroStrategy operates like a Ponzi scheme because it relies heavily on issuing debt and equity to buy bitcoin, diluting shareholder value.

A Bitcoin bloodbath is imminent. When prices start falling like a rock, don't say we didn't warn you.

This entire run-up to the crisis has been driven by manipulation and fraud, and just as quickly as it has risen, it will fall. If you're deep into the cryptocurrency space, it's time to make profits - before it's too late...

- Jacob King (@JacobKinge) December 31, 2024

My view on Saylor/MSTR: It will eventually break, but most short trades will be mistimed and ruin the bet against BTC and MSTR.

Key points:

• A large proportion of MSTR debt is close to 0% interest, with maturities extending between 2027-2030, so servicing or repayment is not in the offing...

- Felix Hartmann (@FelixOHartmann) December 30, 2024

Felix Hartmann of Hartmann Capital is more optimistic, seeing interest rates near zero and maturities extending between 2027 and 2030 making MicroStrategy's commitment to short-term debt manageable. “Every decline in Bitcoin brings pessimists,” Hartmann said. “Every pump resets the MSTR premium and makes Saylor look like a genius,” he said, predicting that MSTR would surpass five in market cap before the collapse. There is disagreement among investors over how the shareholder vote will direct MSTR toward its ambitious “Bitcoin 21/21” goal as the company enters its next phase.