After a sharp decline on Thursday, MicroStrategy Inc. (NASDAQ:MSTR) is showing signs of recovery in pre-market trading on Friday.
What Happened: MicroStrategy experienced a 2.73% increase in pre-market trading early Friday morning, following a significant 16% drop on Thursday, according to Benzinga Pro on Friday.
The company's stock closed 16% lower at $397.28 on Thursday, reflecting the volatility linked to Bitcoin (CRYPTO: BTC). As of 6:25 am ET on Friday, Bitcoin was trading at $98,608.30, with some experts predicting it could soon hit $100,000.
MicroStrategy holds over 150,000 Bitcoins, positioning itself as a leveraged play on the cryptocurrency's fluctuations. This strategy has inadvertently exposed numerous institutional and retail investors to the unpredictable nature of Bitcoin's price movements, despite their potential lack of interest in cryptocurrency investments.
Why It Matters: Recently, MicroStrategy completed a significant financial maneuver, announcing the completion of its offering of 0% convertible senior notes due 2029. The aggregate principal amount of the notes sold in the offering was $3 billion, including an additional $400 million aggregate principal amount of notes issued pursuant to an option to purchase.
However, Galaxy Digital Holdings Ltd. CEO Mike Novogratz recently warned that Bitcoin's "inevitable" surge toward $100,000 could face a significant pullback due to excessive market leverage.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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