Strategy's Saylor Acknowledges 'Volatility Test' as STRC Hits New Low on Bitcoin Weakness

MicroStrategy's Series A preferred stock (STRC) reached a new all-time low of $11.01 on May 13, 2024, as the price of Bitcoin continued to fall below the $60,000 mark. This decline represents a significant drop from its initial offering price of $1,000 per share in December 2021. The company's CEO, Michael Saylor, acknowledged the volatility of the preferred stock in a May 13 tweet, referring to it as a "volatility test" for investors. MicroStrategy holds a substantial amount of Bitcoin, and the performance of its preferred stock is closely tied to the cryptocurrency's market value. The company's common stock (MSTR) also experienced a decline, falling 2.3% to $101.38 during the same trading session. Analysts are closely watching MicroStrategy's strategy of using debt to acquire Bitcoin, as this approach amplifies both potential gains and losses. The company's substantial Bitcoin holdings, currently exceeding 214,000 BTC, are a key factor influencing investor sentiment towards both its common and preferred stock.