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MicroStrategy Inc.’s cryptocurrency bet hit a bump on Tuesday when the launch of the first Bitcoin-linked exchange-traded fund in the U.S. drew investors away from some companies with exposure to the digital currency.
The tech company fell 2.7% to $719.38 at 10:55 a.m. in New York as the focus shifted to the highly-anticipated start of trading in ProShares Bitcoin Strategy ETF, which raised questions about the need to buy a stock that serves as a vehicle to invest in Bitcoin.
The company held about 114,042 Bitcoins as of Sept. 12, according to a tweet from Chief Executive Officer Michael Saylor. Saylor, a vocal Bitcoin bull who has adopted the laser-eyed profile picture popular with enthusiasts on Twitter, tweeted more praise for the crypto ahead of the session’s market open Tuesday.
MicroStrategy didn’t immediately respond to a Bloomberg News email requesting a comment.
While MicroStrategy shares are up more than 330% in the past year, those gains trail Bitcoin’s 432% return over the same period. Tuesday’s weakness leaked over to Bitcoin miners including Marathon Digital Holdings Inc. and Canada-based Bitfarms Ltd., with both falling more than 5%.
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