MicroStrategy saw its share plunge over 15% during a volatile trading session on Tuesday. The share plunge came a day after it had announced plans to buy more of the token using the money raised from the sale of $600 million in convertible senior notes. The announcement had sent the shares of the company up in the last trading session. However, the effect of the update seems to be fading now.

MicroStrategy Sees Shares Fall

Earlier in the trade, MicroStrategy shares fell over 7%. With a continued fall, the stock has toppled over 16%. The move comes in tandem with other crypto-related stocks are well. At the press time, Coinbase, Oracle, and Marathon stocks have also tumbled. Coinbase currently is trading down 2.8% while Oracle and Marathon have fallen 2% and 12% respectively.

Crypto Stocks Plunge Despite Bitcoin Breaking Records

The fall in MicroStrategy and other crypto-related stocks comes despite Bitcoin prices hitting a record high. The value of Bitcoin soared to above $69,000, setting a new record for the cryptocurrency. First reached on November 10, 2021, this noteworthy financial accomplishment highlights the increasing interest and trust that investors have in Bitcoin as a top digital asset.

Read Also: Bitcoin Achieves All-Time High, Climbing Above $69K

MicroStrategy’s Plans to Buy More Tokens

The largest corporate Bitcoin holder, Virginia-based MicroStrategy, had previously declared that it plans to buy more of the token using the money raised from the sale of $600 million in convertible senior notes. For MicroStrategy, increasing its Bitcoin reserve is not a novel decision. The co-founder of the business, Michael Saylor, has been an outspoken supporter of Bitcoin, calling it the best exit route. His substantial $155 million Bitcoin buy earlier, which increased the company’s holdings to 193,000 Bitcoins, showed his faith in the cryptocurrency.

The issuing of convertible senior notes by MicroStrategy as a means of acquiring additional funds is indicative of its aggressive approach to Bitcoin investing. These notes are positioned as senior, unsecured obligations of the corporation, with a semi-annual interest payment schedule beginning on September 15, 2024.  These notes have a March 15, 2030, maturity date, unless they are redeemed, converted, or purchased before then. With the help of this financial tool, MicroStrategy can effectively raise funds and solidify its leadership position in the Bitcoin market. The business increased its Bitcoin holdings to 193,000 units in February, which, at current market rates, are worth close to $13 billion. Furthermore, MicroStrategy added to its holdings last month when it bought 850 Bitcoins.

The post MicroStrategy Shares Plunge After Token Purchase Announcement appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am