MicroStrategy shares closed down 8.2% on Monday at $302.96, the lowest closing price since November 8, according to Google Finance data. The stock then fell a further 3% to $293.59 in after-hours trading, down 46% from its all-time high in November.
Despite increased Bitcoin purchases and its inclusion in the Nasdaq 100, MSTR has been falling since hitting an intraday high of $543 on November 21.
Nick Ruck, director of LVRG Research, noted that investors may have begun to view MSTR as too risky given the company's use of increased debt and equity to purchase Bitcoin. MicroStrategy primarily finances its Bitcoin acquisitions by issuing convertible notes and bonds to investors.
Ruck said: "When the company buys more BTC, existing shareholders will be diluted, but if it doesn't, it may indicate that the company is stagnating on a major part of its value proposition, which puts MSTR in a dangerous position as Bitcoin has risen sharply in the past few months while the United States is struggling to control inflation, the economic outlook is uncertain, and a new White House administration is about to take office." (The Block)