From Nasdaq, Inc.:

MicroStrategy’s stock on the NASDAQ (MSTR) dropped by 20.7% in January 2024 due to rumblings in the Bitcoin market. The U.S. Securities and Exchange Commission approved 11 new Bitcoin ETFs, leading to a further 21.7% stock decline. However, the ETFs performed poorly, with the mere 1.3% rise in Bitcoin prices indicating their lack of long-term potential. MicroStrategy still carries $2.45 billion in Bitcoin, financed by stock sales and debts.

MicroStrategy’s shift towards the Bitcoin market has overshadowed its successful business intelligence operation. Founder and chairman, Michael Saylor, has committed to Bitcoin investment, with the majority of MicroStrategy’s reserves being converted to cryptocurrency. While risky, their unique role in the market aims to amplify Bitcoin prices long-term. The company’s expected earnings report on Feb. 6 should indicate a consistent focus on Bitcoin over core business metrics.

The Motley Fool Stock Advisor analyst team has identified 10 best stocks to buy, none of which include MicroStrategy. Since 2002, the Stock Advisor service has tripled the return of S&P 500, a testament to its success. However, it is worth noting that The Motley Fool has positions in and recommends Bitcoin. The views expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.



Read more: Why MicroStrategy Stock Fell More Than 20% Last Month