LIVE MARKETS-MicroStrategy's share turnover tops tech giants as bitcoin on verge of $100,000

Reuters11-22 20:29
LIVE MARKETS-<a href="https://laohu8.com/S/MSTR">MicroStrategy</a>'s share turnover tops tech giants as bitcoin on verge of $100,000

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MICROSTRATEGY'S SHARE TURNOVER TOPS TECH GIANTS AS BITCOIN ON VERGE OF $100,000

Bitcoin hoarder and software firm MicroStrategy MSTR.O firmed 5% in robust U.S. premarket trading with its turnover topping some of the most valuable listed companies, as the world's largest cryptocurrency came within spitting distance of $100,000.

About $840 million worth of shares changed hands by 1215 GMT, more than that in Nvidia NVDA.O, Tesla TSLA.O or Apple AAPL.O, according to Refinitiv LSEG data.

The loss-making company's market value as much as doubled to over $100 billion since Donald Trump's U.S. election victory this month, as hopes for a more crypto-friendly government ballooned the price of its bitcoin reserve, taking the stock's year-to-date gains to an eye watering 500%.

However, the stock plunged 16% on Thursday as Citron Research revealed a short position in the company as a hedge while remaining bullish on bitcoin.

On Thursday, MicroStrategy logged in $45 billion in share turnover, more than Tesla TSLA.O and Amazon.com AMZN.O combined.

"The fact it has a traded greater $ notional than Tesla and Amazon is remarkable, and one suspects the crypto movement will be hoping to express a healthy bout of schadenfreude should MSTR regain composure and reverses higher," said Pepperstone Head of Research Chris Weston.

MicroStrategy and its subsidiaries hold about 331,200 bitcoins, as of Nov. 17. controling 1.6% of total bitcoin supply, which were bought at an average purchase price of about $49,874 per bitcoin, indicating the overall value has nearly doubled.

The company's $80 billion market value is still trading at a 145% premium to its $32.7 billion bitcoin stockpile.

"Much respect to (Michael Saylor), but even he must know (MicroStrategy) is overheated," Citron said on Thursday. Under Executive Chairman Saylor, the company has raised capital all through the year to acquire more bitcoin.

(Medha Singh)

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