Microstrategy stock is taking a heavy beating in the premarket trading session at the Nasdaq on Friday.
The stock is down about 6% at the time of writing, trading at $326.46. The fall which marks a stark contrast from a month ago for MSTR stock comes as Bitcoin sees a sharp correction from an all-time high of $108,268 hit on Dec. 17 to trade near $93,758 at the time of writing.
The correction in Bitcoin is leading to bearish sentiments in the trading session around all crypto-exposed stocks but Microstrategy is the worst hit.
This doesn’t come as a surprise as the Michael Saylor-led company is highly leveraged around Bitcoin and sees bigger movements than the underlying crypto in both directions during times of market volatlity.
MSTR stock had reached a 52-week high of $542.99 on November 21, with euphoria around the apex cryptocurrency crossing the much-coveted $100,000 level.
Meanwhile, Greyscale Bitcoin Trust is down 2.87% and iShares Bitcoin Trust ETF (IBIT) is down 2.9%.
Yet, cryptocurrency isn’t the only factor as wider markets take a heavy beating. S&P 500 futures are down 1.1% and Nasdaq futures are down 1.68% at this time, continuing with the fall from the previous two sessions.
The markets are bleeding following the U.S. Federal Reserve setting expectations for fewer rate cuts than expected in 2025, as Dzambhala previously detailed.
Also read why MicroStrategy’s strategy of debt for Bitcoin is making Martin Shkreli bearish on the apex cryptocurrency.