Bitcoin Flash Crash: MicroStrategy's 18% Drop and Major Warning Signs
MicroStrategy's stock fell as much as 18% on Tuesday as the price of bitcoin dropped, following the company's purchase of an additional 9,245 bitcoins for about $623 million. The company now holds a total of 214,246 bitcoins. MicroStrategy's aggressive bitcoin-buying strategy has caused its stock to primarily trade as a proxy for the cryptocurrency's price, and the stock tends to move in tandem with bitcoin. Despite the recent drop, MicroStrategy's stock is still up 108% this year, outpacing bitcoin's 50% run.