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MicroStrategy Tumbles as Bitcoin's Price Falls Below $30,000

MicroStrategy's increased holdings in a battered Bitcoin are pulling shares down.

MicroStrategy  (MSTR) - Get Report tumbled Tuesday as the business software company was pulled down by its heavy investment in a plummeting Bitcoin.

Shares of the Tysons Corner, Va., company were sliding 11.1% to $518.94 on Tuesday.

Bitcoin was down 11.5% to $29,210, falling below a key support level of $30,000 as China amped up its crackdown that has all but banned transactions in digital currencies in the country.

Other companies with ties to cryptocurrency and blockchain technology were falling Tuesday, including Riot Blockchain  (RIOT) - Get Report, which was down 8.6%, Marathon Digital Holdings  (MARA) - Get Report, down 11.5%, and Coinbase Global  (COIN) , down 4.6%.

The People’s Bank of China told the country’s major financial institutions on Monday to stop facilitating virtual-currency transactions, increasing the negative sentiment in crypto markets

On Monday, MicroStrategy, which has become the largest publicly traded corporate holder of Bitcoin, said it purchased 13,005 units of the cryptocurrency for about $489 million, an average price of about $37,617, using the price drop to increase its holdings.

"In the last twelve months, Bitcoin has arrived on Wall Street," CEO Michael Saylor tweeted on Monday. "That is the news. The rest is noise."

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"Your post is noise," one person responded. "China closing down mining so it doesn't have to build more power plants to keep up with demand, and can now use its clean energy for its people is the real news."

On Tuesday, Saylor tweeted, "'Truth is the daughter of Time'--Aulus Gellius on Bitcoin," referring to the Roman author who died in 180 A.D.

"In gold there is truth," one responder said. "In Bitcoin there is speculation."

MicroStrategy said last week that it had filed a "shelf" registration with the Securities and Exchange Commission to sell as much as $1 billion in common stock for general purposes, including the purchase of more Bitcoin.

MicroStrategy and Saylor have been big proponents of Bitcoin, making Bitcoin acquisition a second mandate for the 32-year-old company after its main business of developing software.

Saylor recently described Bitcoin as "the most efficient use of energy the human race has come up with."

Earlier this month, MicroStrategy said it intended to offer $400 million in senior notes to purchase additional Bitcoin. 

In May, Saylor said on Twitter that MicroStrategy had purchased an additional 229 Bitcoin for $10 million at the average price of $43,663.