Microstrategy saw a decline of 55% in its stock since November and now recently the price of Microstrategy (MSTR) Accumulation has declined by 11%, which has come down from $ 473.83 to $ 211.85. This decline has become a major concern for investors, as it can affect the company’s investment status, especially in terms of their bitcoin funding.
11% decline in microstrategy accumulation
Microstrategy saw a decline of 11% in its stock since November, which brought it to its lowest level since 20 November. With this decline, traders and investors are wondering how this value can affect AID company’s future. The company currently has 499,096 bitcoin, which it bought at a price of average $ 66,350 per bitcoin. The total cost on this investment is around $ 43.7 billion.
The recent decline in Bitcoin Value reached $ 86,136, which has made the situation even more worrying. This decline is a great sign for microstrategy, as the company has such a large portfolio of bitcoin. According to reports, if the price of Bitcoin goes below $ 66,000, then Microstrate may have to face the situation of selling its Bitcoin Property.
Microstrategy plans to buy Bitcoin continuously since August 2020 and still Microstrategy is making new plans to buy bitcoinTill now he has not sold his bitcoin assets despite the decline in the market. The company never sold its bitcoin at low prices, no matter how much the market has come down. The reason for this is that the company believes that the price of Bitcoin will increase in the long term and it will get good benefit from its investment.
However, the company also has a $ 8.2 billion debt on a $ 43.4 billion Bitcoin Funding. However, most of this debt will have to be repaid by 2027, which immediately protects him from financial pressure. The structure of this Debt is protected from the company short-term financial challenges.
The future of Microstrate is dependent on the price of bitcoin
The analyst believes that Bitcoin’s future may be bright. Institution is now looking at Bitcoin as a reserve and their interest towards it is increasing. This may increase the price of bitcoin in the future. The current Crypto Market is different from the previous Crypto Winter, as now governments and large organization are creating bitcoin reserve programs, which will strengthen the demand for Bitcoin and increase prices.
Despite this, investors remain concerned about the status of microstrategy. If the price of Bitcoin falls more, the company may have a pressure to sell its assets. If Bitcoin Value If it grows, then the company’s investment can prove to be a profitable deal in the long term.
Conclusion
The future of microstrategy depends on the price of bitcoin. If the price of bitcoin increases, there is a possibility of profit for microstrate, but if the price of bitcoin falls, it may have a pressure to sell your bitcoin assets.
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