MicroStrategy (MSTR) Stock Is Up, What You Need To Know

What Happened?

Shares of business analytics software company MicroStrategy (NASDAQ:MSTR) jumped 3.5% in the morning session after the price of its key asset, Bitcoin, surged to a new all-time high, and after the company announced it had purchased more of the cryptocurrency. 

The enterprise software company, which has famously made holding Bitcoin a core part of its corporate strategy, saw its shares climb in tandem with the world's largest cryptocurrency. Bitcoin's price soared past the $122,000 mark, continuing a powerful rally. This upward momentum in the crypto market directly benefits MicroStrategy, as the value of its substantial Bitcoin treasury increases. Adding to the bullish sentiment, MicroStrategy disclosed in an SEC filing that it had purchased an additional 4,225 bitcoins for approximately $472.5 million between July 7 and July 13. 

This latest acquisition brings the company's total holdings to 601,550 bitcoins., The move reaffirms the company's aggressive strategy of using its balance sheet to accumulate the digital asset, a practice that has closely tied its stock performance to Bitcoin's price fluctuations.

After the initial pop the shares cooled down to $442.76, up 1.9% from previous close.

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What Is The Market Telling Us

MicroStrategy’s shares are extremely volatile and have had 80 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.

The previous big move we wrote about was 3 days ago when the stock gained 3% as 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.

MicroStrategy is up 47.6% since the beginning of the year, and at $442.76 per share, it is trading close to 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 $37,953.

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