Shares of Strategy (MSTR -11.20%) are trading lower on Tuesday. The company's stock lost 11.7% as of 12:25 p.m. ET and had lost as much as 12.6% earlier in the day. The drop comes as the S&P 500 (^GSPC -0.37%) lost 0.9% and the Nasdaq Composite (^IXIC -1.01%) lost 1.6%.
Strategy, known as MicroStrategy until earlier this month, announced on Monday that it had completed its private offering, raising $2 billion in capital, which it used to buy additional Bitcoins.
The company purchased 20,356 Bitcoins at an average price of $97,514. Its total reserves now amount to just shy of 500,000 Bitcoins, representing more than 2% of all Bitcoins that will ever be mined.
Under the guidance of Bitcoin advocate and Strategy executive chairman Michael Saylor, the company is amassing as many Bitcoins as it can. To do so, however, the company has had to take on significant debt. The strategy could pay off if Bitcoin continues to appreciate significantly, but there is certainly no guarantee of that happening.
This means that any major movements in Bitcoin tend to affect the company's stock price. Today's sharp decline in Bitcoin's price helped drive Strategy's drop.
Even if Bitcoin continues its rise, Strategy's stock is still likely to struggle in the long term. There is a lot of hype around the stock, and much of its current price already has significant future Bitcoin growth baked in. The company's price-to-sales ratio (P/S) is very high at nearly 120.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。