Why Bitcoin-Linked Stock MicroStrategy Is Falling Today

Why Bitcoin-Linked Stock MicroStrategy Is Falling Today

MicroStrategy Inc MSTR shares are trading lower Wednesday after D.C. Attorney General Karl A. Racine announced a lawsuit against the company's co-founder and executive chairman Michael Saylor.

What Happened: Racine took to Twitter Inc TWTR Wednesday afternoon to announce a lawsuit against Saylor for alleged tax fraud. 

"Today, we’re suing Michael Saylor - a billionaire tech executive who has lived in the District for more than a decade but has never paid any DC income taxes - for tax fraud," Racine said via tweet

The D.C. Attorney General noted that the lawsuit is also aimed at MicroStrategy "for conspiring to help him evade taxes he legally owes on hundreds of millions of dollars he’s earned while living in DC."

See Also: Think Bitcoin Will Go Down? New ETF Bets Against Bitcoin Bull Michael Saylor And MicroStrategy

Saylor stepped down as CEO of MicroStrategy in early August to increase his focus on cryptocurrency, specifically Bitcoin BTC/USD.

"This will allow me to take the role of executive chairman where I can be a more enthusiastic advocate for Bitcoin," Saylor said in a CNBC interview at the time.

"You never would have guessed that a mid-sized software company in the enterprise software space could outperform all of 'big tech' and every asset class and even Bitcoin from a standing start, but it's worked extraordinarily well for us."

MSTR Price Action: MicroStrategy has a 52-week high of $576.26 and a 52-week low of $134.09.

The stock was down 5.65% at $226.66 at press time, according to Benzinga Pro.

Photo: QuinceCreative from Pixabay.

Posted In: Karl RacineMichael SaylorCryptocurrencyNewsLegalMarketsMoversTrading Ideas