tl;dr
MicroStrategy (MSTR) shares have surged to a new high, reaching $260 per share as Bitcoin soared past $71,000. MSTR's year-to-date performance has outpaced BTC, with a 470% increase since the start of the year. BlackRock's increased investment has propelled MSTR to its highest level in 24 years, wit...
MicroStrategy (MSTR) shares have surged to a new high, reaching $260 per share as Bitcoin soared past $71,000. MSTR's year-to-date performance has outpaced BTC, with a 470% increase since the start of the year. BlackRock's increased investment has propelled MSTR to its highest level in 24 years, with the company now holding the largest public Bitcoin reserve. Industry experts predict further gains in MSTR's share price due to its correlation with BTC. However, some investors express caution, warning that the rapid surge may not be sustainable. Meanwhile, Bitcoin also reached its highest level since July, with bullish sentiment as the US election approaches.
Today, MSTR reached a peak of $260 per share. The stock gained 125% in September alone and has surged 470% since the start of the year. While Bitcoin has yet to break its previous highs, MSTR surpassed its earlier peak at the start of October and has been climbing ever since.
MicroStrategy’s momentum is fueled by news that investment giant BlackRock has raised its stake in the company to 5.2%. Alongside its Bitcoin purchases through ETFs, BlackRock’s investment in a company closely tied to Bitcoin seeks to maximize returns.
In 2024, the company has consistently issued bonds to buy Bitcoin. Last month, MicroStrategy issued $700 million in bonds, following a $800 million bond offering in June. Currently, MicroStrategy holds the largest public company Bitcoin reserve, with 252,220 BTC, accounting for 1.2% of the total supply. The average purchase price is around $39,266 per BTC, representing a gain of over 80%. Some industry experts predict that the correlation between MSTR stock and BTC will continue to fuel further gains in MicroStrategy’s share price.
However, investor PlanG takes a more cautious view when analyzing MSTR’s price on a log-linear chart. "I think a lot of the degen people that were doing all sorts of degen things with crypto are doing the same thing with MSTR. I love MSTR but this is not sustainable. Straight line in a log-linear chart means exponential. I think several people will get hurt," PlanG commented.
Meanwhile, Bitcoin also surpassed $71,000 today, marking its highest level since July. Investor sentiment toward Bitcoin has turned bullish as the US election approaches in less than a week.
More about MicroStrategy Incorporated
MICROSTRATEGY INCORPORATED
MicroStrategy Incorporated provides global business analysis software and services. The company is headquartered in Tysons Corner, Virginia.
Industry: TECHNOLOGY
Sector: SERVICES-PREPACKAGED SOFTWARE
Market Cap: 47,237,390,000
Dividend Yield: None
EPS: -1.87
P/E Ratio: 2.901
Return on Equity: -0.437
Revenue: 480,634,000
Stock Price: 201.97
Volatility: -0.775
Beta: -0.074