Seller Exhaustion or a Bottom? Strategy Gains 11% From Session's Worst Levels
Strategy (MSTR) shares bounced significantly after an initial plunge caused by a capital raise and falling Bitcoin prices.Summary
Strategy (MSTR) shares plummeted by 12.5% to a near 15-month low on Monday, driven by an overnight crash in Bitcoin prices and the announcement of a $1.44 billion common stock sale intended to fund preferred dividends for the next 21 months. Despite Bitcoin remaining near session lows, MSTR managed to erase almost all losses, finishing down only 3.25% from its low, suggesting potential short-covering. Critics like Peter Schiff attacked the move, arguing that the company is selling stock to fund debt obligations at a higher cost than the assets yield, calling the business model a fraud. Whether this reversal marks a true bottom for the struggling shares remains uncertain, but bulls may find solace in past instances where Schiff's bearish pronouncements preceded market reversals.
(Source：CoinDesk)