What Happened?
Shares of business analytics software company MicroStrategy (NASDAQ:MSTR) jumped 3% in the morning session after the price of Bitcoin surged to a new record high, surpassing $118,000. As the world's largest corporate holder of Bitcoin, MicroStrategy's stock price is highly sensitive to the cryptocurrency's market movements. This significant unrealized gain on its digital asset holdings is providing a strong tailwind for the stock.
The rally in Bitcoin is being attributed to strong institutional investor demand and a favorable outlook for the asset class. The broader crypto market also saw gains, with other related stocks like Coinbase and various bitcoin miners rising in pre-market trading.
After the initial pop the shares cooled down to $430.03, up 2% from previous close.
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What Is The Market Telling Us
MicroStrategy’s shares are extremely volatile and have had 81 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
MicroStrategy is up 43.3% since the beginning of the year, but at $430.03 per share, it is still trading 9.2% below its 52-week high of $473.83 from November 2024. Investors who bought $1,000 worth of MicroStrategy’s shares 5 years ago would now be looking at an investment worth $37,134.
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