Michael Saylor, chairman of MicroStrategy, addressed the audience at the Bitcoin 2024 conference held in Nashville, Tennessee, on July 26, 2024. The event comes at a critical time for the company as its stock plunged roughly 7% on Monday, following Bitcoin's dip below the firm's average purchase price per token.
On Monday, Bitcoin reached its lowest price since last April, trading at approximately $74,500. This decline is slightly below MicroStrategy's average purchase price of $76,052 per Bitcoin, as detailed in a regulatory filing from February 2. This raises concerns that Michael Saylor's company could face financial challenges if the digital currency continues to fall. MicroStrategy holds approximately $56 billion in Bitcoin, according to its website.
The drop in MicroStrategy's shares aligns with an 11% decrease in Bitcoin value over the past five days. This decline is largely attributed to escalating geopolitical concerns and speculations regarding a shift in monetary policy in the United States.
Last week saw investors withdrawing from risk-on assets worldwide, including cryptocurrencies, amid a climate of increased tensions between President Donald Trump and European leaders regarding the U.S.'s Greenland ambitions. The situation worsened on Friday when President Trump announced his endorsement of Kevin Warsh as his choice for Federal Reserve Chair, prompting investors to adopt more conservative stances.
The downward trajectory of Bitcoin was further intensified by a series of forced liquidations. Coinglass data reveals that over $2 billion worth of long and short positions tied to the asset were liquidated since Thursday.