Bitcoin

MicroStrategy stagnates – has Michael Saylor overstepped the curve?

The Microstrategy share has increased almost tenfold in the past few months. MSTR is currently fighting for the $ 1,000 mark again. Is this the latest announcement from CEO Saylor behind it?

The share of the US IT service provider MicroStrategy has had a record rally. On February 8, MSTR hit a temporary all-time high of $ 1,350. With new announcements of Bitcoin investments, CEO Michael Saylor fueled the price rally at MSTR. The enormous increase in the Bitcoin Billionaire price since the end of 2020 played into the CEO’s hands.

It was not until February 16 that Saylor announced again that it wanted to top up the company’s bulging Bitcoin coffers with additional BTCs worth almost a billion US dollars . This is financed with bonds. Saylor’s aggressive BTC accumulation is causing mixed reactions from market watchers.

“Irresponsible”: Roubini condemns Michael Saylor’s Bitcoin strategy

While investors can look forward to an increase of over 670 percent since the beginning of August 2020, some analysts criticize Saylor’s enthusiasm for Bitcoin. One of them is Nouriel Roubini. Because of his prediction of the financial crisis 2007/08 as “Dr. Doom ”well-known US economist is notorious for his negative attitude towards Bitcoin. Accordingly, Roubini shows little understanding for the Bitcoin antics of MicroStrategy:

For institutional investors to say, „We are going to invest in crypto“ makes no sense. You have a failing company that has had a flat stock – like MicroStrategy – for a decade, and your head, who is a coke addict, decided he should put the whole house on bitcoin. That is irresponsible behavior. There won’t be a company boss who puts his money into something so volatile

Permabär Roubini does not give Saylor a good deal in the Coindesk interview.

MicroStrategy Stock in Correction Mode?

When it became known on February 8th that the US automaker Tesla had also invested billions in Bitcoin, MSTR shares also benefited from the news. And probably not just because of the Bitcoin raterose from $ 38,000 to over $ 46,000 on the day of the Tesla news. By Tesla’s decision to include BTC in his reserve, Musk also legitimized Saylor’s Bitcoin strategy, so to speak. On February 8, MSTR shares passed the $ 1,000 barrier, hitting an all-time high of 1,315 on February 9. Since then, the share has been, if not in a plunge, at least in a decline. The thousand mark was given back on February 16, the day MicroStrategy announced further Bitcoin purchases. At press time, MSTR is trading at $ 925 on the New York Stock Exchange.

Saylor chains MSTR to the Bitcoin train

There is no question that Saylor’s controversial Bitcoin move has paid off: The company’s value has increased sevenfold since August 2020 and is currently at $ 8.8 billion. This is largely due to the massive rise in the price of Bitcoin. MSTR and BTC have been moving in tandem since the second half of the year. MicroStategy even outperformed Bitcoin.