MicroStrategy Incorporated (NASDAQ:MSTR) shares plunged after the software company-turned-cryptocurrency holding company announced it plans to raise $600 million to buy more bitcoin.
Having surged at the start of the week to a 24-year peak of $1,334 on the back of the recent bitcoin rally, the shares plunged 16.4% to $1,115 shortly before noon on Tuesday.
Bitcoin briefly hit a new record high price of $69,000 on Tuesday morning before retreating to about $65,000 late morning.
Virginia-based MicroStrategy said it intends to raise $600 million through the private offering of convertible notes to purchase bitcoin and for general corporate purposes.
Last week, the company disclosed that it had purchased about 3,000 bitcoins for approximately $155.4 million in cash at an average price of $51,813 each.
As of February 25, it held 193,000 bitcoins purchased at an average price of $31,544.