Bitcoin got a boost Sunday from President Donald Trump, who announced plans for a U.S. strategic crypto reserve.
The meme stock phenomenon is resurfacing in the stock market, with companies like Mara Holdings NASDAQ: MARA, MicroStrategy NASDAQ: MSTR, and AMC Entertainment NYSE: AMC experiencing significant price swings and trading volume. This volatility is driven by the collective online activity of retail investors rather than traditional financial metrics.
The California State Teachers' Retirement System bought more MicroStrategy and Nu Holdings stock, and slashed positions in Dollar General and Celsius Holdings in the fourth quarter.
Shares of Strategy (MSTR 6.59%) stock -- formerly MicroStrategy -- sank around 15% this week, according to data from S&P Global Market Intelligence. The Bitcoin investment company sank along with the price of Bitcoin this week as it ramps up its convertible notes and debt offerings to help fuel more Bitcoin purchases.
The US stock market continues to see a lot of noisy behavior, as the market will be looking at the recent earnings calls, and of course the overall global economic concerns.
As the largest corporate holder of Bitcoin, the stock's direction is largely tied to that of the cryptocurrency
The company may need to reassess its aggressive Bitcoin acquisition strategy.
MicroStrategy (MSTR -11.40%) changed its name to Strategy on February 5 to reflect the shift in its primary business model from an enterprise software company to the largest corporate holder of Bitcoin. Since buying its first Bitcoin in August 2020, Strategy stock is up nearly 1,800%, outperforming every company in the S&P 500, including Nvidia.
The bitcoin play has fallen below a key support zone to trade at the lowest prices seen since before President Trump's election win.
MicroStrategy Incorporated (NASDAQ:MSTR) shares were down 9% on Tuesday afternoon after the software firm, now rebranded as Strategy, announced a $2 billion Bitcoin purchase even as the cryptocurrency's price has declined. The company, a major corporate holder of Bitcoin, acquired 20,000 BTC, bringing its total holdings to approximately 499,096 BTC, valued at $43.7 billion.
Strategy (MSTR -9.91%) stock is slumping in Tuesday's trading. The company's share price was down 13% as of 2:40 p.m.
Shares of Strategy (MSTR -11.20%) are trading lower on Tuesday. The company's stock lost 11.7% as of 12:25 p.m.