MicroStrategy’s Bitcoin Gamble Sends Stock Plummeting!

MicroStrategy's stock plummeted over 8% after its latest $209 million Bitcoin purchase, raising concerns about its highly leveraged strategy and reliance on debt to fuel its aggressive crypto investments.

Author

Steven Walgenbach
December 31, 2024

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Breaking Crypto Stories

Here are the top stories today:

  • Microstrategy Shares Plunge 8% After Its End-Of-Year Bitcoin Buy

  • Hyperliquid Rolls Out Native Staking on Mainnet

  • Brian Fanzo Predicts Meme Coin Explosion: Why the Supercycle Is Just Getting Started

  • MicroStrategy Acquires 2,138 Bitcoin for $209 Million

  • Decentralized Exchanges Shatter Records with $462 Billion Trading Volume in December

Question of the Day

When will the meme coin super cycle happen?

MicroStrategy's stock (MSTR) fell over 8% following a $209 million Bitcoin purchase, sparking concerns over its heavily leveraged strategy, which has left the company reliant on issuing debt or equity to continue its aggressive Bitcoin accumulation.

  • MicroStrategy shares dropped over 8% following its $209 million Bitcoin purchase, with an initial 5.3% decline during trading hours and an additional 3.19% dip in after-hours trading.

  • Observers criticized MicroStrategy's heavy use of leverage and proposed 10 billion increase in authorized shares, calling it a "lose-lose" situation as the company depends on debt or equity issuance to sustain its Bitcoin acquisitions.

  • While the stock has gained over 340% since January, analysts warn of potential implosion, with contrasting views on whether a bullish market could rescue the company or hasten its collapse due to its high-risk strategy.

Hyperliquid, a decentralized finance protocol, has launched native staking on its mainnet, enabling token holders to earn rewards while securing the network, as its trading volume and native token price surge amid growing DeFi adoption and regulatory hurdles.

  • Hyperliquid introduced native staking with 16 validators, allowing users to earn rewards by locking tokens, with $344 million worth of HYPE tokens already staked.

  • Hyperliquid's trading volume surpassed $12 billion in December, while its token price skyrocketed from $3.90 in late November to $26.80, reflecting strong community adoption and activity.

  • Despite DeFi growth, U.S. tax authorities reaffirm staking rewards as taxable income and classified front-end decentralized protocols as brokers, adding reporting obligations for digital asset transactions.

Brian Fanzo of PepeCoin predicts that the highly anticipated meme coin supercycle is yet to begin, emphasizing that utility-driven tokens will dominate the next crypto bull run.

  • Brian Fanzo predicts the meme coin supercycle is yet to begin, emphasizing that utility-focused tokens like PEPU and PENGU will dominate the next crypto bull run due to their innovative features such as NFTs, layer-2 tech, and gaming ecosystems.

  • Despite growing hype around AI and celebrity meme coins, Fanzo believes these trends may struggle to maintain relevance, with celebrity tokens often failing to sustain long-term interest.

  • Fanzo envisions a future where utility-driven meme coins merge with AI innovations, creating a new generation of tokens that blend functionality with lighthearted appeal, redefining the meme coin market.

MicroStrategy has acquired 2,138 Bitcoin for $209 million, boosting its total cryptocurrency holdings, while reporting a 74% year-to-date Bitcoin.

  • MicroStrategy has acquired 2,138 BTC for $209 million, raising its total cryptocurrency holdings and demonstrating its commitment to aggressive Bitcoin accumulation.

  • The company reported an impressive 74% year-to-date yield on its Bitcoin holdings, showcasing the strong performance of its crypto investment strategy in 2024.

  • To fund future Bitcoin acquisitions, MicroStrategy is seeking regulatory approval to expand its authorized shares, emphasizing its long-term bullish stance on Bitcoin as a strategic asset.

Decentralized exchanges (DEXs) reached a record $462 billion in monthly trading volume in December, highlighting surging activity in the DeFi sector.

  • Decentralized exchanges (DEXs) hit a record-breaking $462 billion in trading volume in December, marking a significant increase from November's $374 billion, driven by optimism in the DeFi sector.

  • Uniswap led the DEX market with $106.4 billion in volume, followed by PancakeSwap and Solana-based Raydium, showcasing the expanding adoption of decentralized platforms.

  • While DEX trading thrived, the meme coin market faced a sharp correction, dropping from a $137 billion peak to $92 billion by the end of December, highlighting contrasting trends within the crypto market.

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