MicroStrategy suffered its biggest four-day decline, hitting $30 billion due to Bitcoin correction.

MicroStrategy’s market capitalization recorded its largest four-day decline in history, raising questions about its status as a leveraged Bitcoin investment vehicle.

The company’s market value has fallen more than 35% from its November 21 peak, resulting in a loss of more than $30 billion.

This is the business intelligence company’s biggest drop in four days, according to Kobeissi Letter, which highlighted the drop in X posts on November 26.

“MicroStrategy stock, MSTR, is down 35% from its high on November 21st. “This means that $30 billion in market capitalization was erased in just four trading days.”

MicroStrategy stock price was on the rise, but showed a short-term decline this week along with Bitcoin (BTC) correction. MicroStrategy’s price fell more than 7.5% in the 24 hours to 9:52 a.m. UTC on November 27, trading at $354.1, TradingView data shows.

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MicroStrategy: Are you still doing leveraged Bitcoin trading?

This decline coincided with Bitcoin’s correction after hitting an all-time high of around $99,800 on November 22.

Since Bitcoin’s all-time high on November 22, the cryptocurrency has fallen more than 7%, and MicroStrategy stock has fallen more than 14%.

However, both Bitcoin and MicroStrategy have posted strong gains over a broader time frame. Over the past month, Bitcoin is up 44% and MicroStrategy is up more than 32%. On the year-to-date chart, Bitcoin is up 146% while MicroStrategy is up over 599%.

Numerous investors see MicroStrategy as a leveraged bet on the price of Bitcoin, which is expected to outperform the returns of the world’s first cryptocurrency.

However, MicroStrategy’s recent 35% decline (more than four times the Bitcoin correction) raises concerns about the stock’s volatility as a Bitcoin proxy.

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MicroStrategy Volatility Due to Retail Investors

This increasing volatility is a result of the growing number of retail traders, according to the Kobeissi letter.

“Last Wednesday alone, retail investors purchased approximately $42 million worth of MicroStrategy stock, $MSTR. “This is the highest single-day retail purchase on record and eight times higher than the daily average for October.”

Retail investors have bought nearly $100 million worth of MicroStrategy stock over the past week, fueled in part by the company’s $2.6 billion bond offering.

Some of the world’s largest traditional institutions are investing in Michael Saylor’s company, including Allianz, Europe’s second-largest insurance provider. Allianz acquired more than 24% of MicroStrategy’s $600 million bond offering in March.

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