MicroStrategy (NASDAQ:MSTR) stock has dropped as much as 9.5% in the two sessions since the software firm that famously holds bitcoin (BTC-USD) on its balance sheet disclosed that it sold a small part of its holdings for the first time.
The stock slipped to as low as $133.77 in Thursday trading, its lowest point since Aug. 10, 2020, when bitcoin (BTC-USD) was trading at $11.9K. In recent trading bitcoin changed hands at $16.6K.
In September 2020, Michael Saylor, who was at that time its CEO, likened the company’s cash and Treasury holdings to a “melting ice cube,” said “we feel pretty confident that bitcoin (BTC-USD) is less risky than holding cash, less risky than holding gold.”
Now, with the sliding value of bitcoin (BTC-USD), selling some of its holdings “may generate a tax benefit” as the company plans to carry back the capital losses resulting from the transaction against previous capital gains, it said in a filing on Wednesday.
Saylor is now the company’s chairman, and President Phong Le became its CEO in August.
In February 2021, Saylor said the world’s largest cryptocurrency “can serve as a dependable store of value.“
SA contributor CashFlow Hunter recently called MSTR’s equity is a leverage bet on Bitcoin and a “terrible risk.”