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    MicroStrategy’s Record Market Value Drop Amid Bitcoin Correction Raises Investment Stability Concerns

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    MicroStrategy, an investment firm, lost over 35% of its market value in four days, representing the company’s biggest four-day drop in history. This coincides with the recent Bitcoin value correction, causing the company’s share prices to drop by 14%, over twice the decrease of Bitcoin’s value. The firm is considered a high-risk, high-reward bet on Bitcoin by many investors, however, the recent large drop is raising skepticism about its stability as an investment. Despite the recent fall, Bitcoin and MicroStrategy have demonstrated profitability over a broader timescale, with yearly increases of 146% and 599% respectively.

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    MicroStrategy, an investment firm, recently experienced the biggest four-day drop in its history, causing people to question its status as an ideal Bitcoin investment option. The company lost over 35% of its market value since Nov. 21, which is about $30 billion. This hit was a historic one for them.

    With the recent dip in Bitcoin’s value, MicroStrategy’s shares also dropped. Despite an overall increase, its share price dropped by 7.5% over 24 hours, bringing it down to $354.1 on Nov. 27 at 9:52 am UTC.

    The reason for the fall in MicroStrategy’s market cap was linked with the correction happening in Bitcoin value after reaching a high of about $99,800 on Nov. 22. As Bitcoin’s value fell by over 7%, MicroStrategy’s shares took an even bigger hit of a 14% drop.

    Despite this, both Bitcoin and MicroStrategy have shown good profitability in a broader time scope. Over the past month, Bitcoin increased by 44%, and MicroStrategy saw over a 32% increase. In yearly contributions, Bitcoin has a 146% increase and MicroStrategy whopping 599%.

    Many investors view MicroStrategy as a high risk, high reward bet on Bitcoin. But the recent 35% drop in its share prices, which is four times larger than Bitcoin’s correction, raises some red flags about investing in it.

    The instability of MicroStrategy could in part be due to an increase in retail investors. According to Kobeissi letter, retail investors bought roughly $42 million worth of MicroStrategy stock on a single Wednesday last week. This is 8 times higher than the daily average in October.

    Throughout the past week, retail investors have bought nearly $100 million of MicroStrategy stock, likely due to the company’s $2.6 billion note offering.

    Several prominent traditional institutions are getting behind the company, including Allianz, the second-largest insurance provider in Europe, which acquired over 24% of MicroStrategy’s $600 million note offering in March.

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