By Callum Keown
MicroStrategy and other crypto-related stocks were falling early Tuesday as the price of Bitcoin slumped below $90,000 to a three-month low.
Shares in MicroStrategy, which recently changed its name to Strategy, were 6.6% lower in early trading, while crypto exchange Coinbase Global fell 4.6% and trading platform Robinhood Markets declined 5.2%.
The trio typically move in tandem with Bitcoin, which was down 6.8% at $87,604 Tuesday.
MicroStrategy resumed its aggressive buying of Bitcoin last week after a rare week without any purchases earlier in the month. The company said it paid about $1.99 billion in cash for 20,356 Bitcoins between Feb.18 and Feb.23, at an average price of $97,514.
The cryptocurrency's recent falls means last week's purchases look like they have already lost around $200 million in value.
Over the long term, though, the company's Bitcoin buying has worked out well -- the average price it has paid for its 499,096 Bitcoins is $66,357 per token, the company said in a filing Monday. That's still comfortably below the current price.
However, the company's Bitcoin holdings were worth close to $50 billion at one point on Friday -- they're now valued at $44 billion.
The recent volatility in the crypto market is a reminder for investors that shares in MicroStrategy and others are also susceptible to pronounced swings.
Write to Callum Keown at callum.keown@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
February 25, 2025 09:50 ET (14:50 GMT)
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