Stocktwits - MicroStrategy, Inc. ($MSTR) shares rose early Tuesday, recovering from the steep losses seen in the premarket session. The business intelligence software company, which has shifted its focus toward Bitcoin, managed to outperform despite Tuesday’s crypto weakness, although retail investors have remained cautious.
MicroStrategy stock has gained a whopping 502% so far this year compared to Bitcoin’s more modest 107% advance.
The stock rode the rally in Bitcoin, which came close to breaking above the $100,000 psychological resistance on Nov. 22. Since then, the crypto has pulled back from the session’s intraday high of $99,655.50.
MicroStrategy stock hit an all-time high of $543 on Nov. 21. The closing high is the $473.83 level reached a session earlier.
By Monday's close, the stock had fallen 30% from its recent intraday high. Technically, a 20% pullback from a recent high suggests the stock is in bear territory.
In a filing with the SEC on Monday, MicroStrategy said between Nov. 25 and Dec. 1, it sold an aggregate of 3.73 million shares under a previously announced private placement, generating net proceeds of $1.48 billion.
Offering an update on its Bitcoin holdings, the company said it held about 402,100 bitcoins acquired at an average purchase price of about $23.4 billion and an average purchase price per bitcoin of $58,263.
In a CNBC interview on Tuesday, Saylor explained the merits of corporations holding Bitcoin on their balance sheets.
MSTR sentiment and message volume December 3, 2024, as of 11:10 am ET | Source: StocktwitsRetail sentiment toward MicroStrategy is ‘neutral’ (51/100), down from the ‘bullish’ mood that prevailed a day ago. Message volume has improved and yet was at ‘normal’ levels.
A Stocktwits user commented on MicroStrategy’s price action reversal and said the stock is headed toward the $451 level.
Another user said the stock is a great short and sees it retreating to $300 by the end of the week or early next.
At last check, MicroStrategy was up 1.95% at $387.73, having traded between the a range of $362.67-$393.12, while Bitcoin was languishing at $95,940.36, down 1.48%.