Why MicroStrategy Stock Plummeted Today

Group 1: Market Reaction - Shares of Strategy (formerly MicroStrategy) fell by 8.8% at market close, with an intraday decline of up to 12.7%, significantly outpacing the S&P 500's and Nasdaq Composite's worst single-day drops in years [1] - The market is reacting negatively to President Trump's announcement of new tariffs, which has particularly impacted riskier assets like Strategy [2][3] Group 2: Tariff Impact - President Trump's tariff package includes a 34% tax on imports from China, 20% on the European Union, and a 10% baseline tax on all countries, marking a significant disruption to global trade [2] - Retaliatory tariffs from major trading partners are expected to hinder U.S. companies' ability to sell internationally, raising concerns about a potential recession [3] Group 3: Company Strategy and Risks - Strategy has shifted from a business intelligence firm to a Bitcoin accumulation company, making its performance heavily reliant on Bitcoin's price and future prospects [4] - The company's strategy has led to significant debt accumulation to build its Bitcoin reserve, raising skepticism about its long-term viability [5]