Why Is MicroStrategy (MSTR) Stock Rocketing Higher Today

What Happened?

Shares of bitcoin development company MicroStrategy (NASDAQ:MSTR) jumped 5.5% in the afternoon session after the price of Bitcoin climbed and the company announced it had purchased an additional 196 bitcoins. 

As the largest corporate holder of Bitcoin, MicroStrategy's stock performance is closely linked to the cryptocurrency's value. The company disclosed it acquired the additional tokens for $22.1 million over the past week, at an average price of $113,048 per coin. This latest purchase brings MicroStrategy's total holdings to 640,031 bitcoins. The news came as Bitcoin itself saw a price increase of over 1.5%, further boosting investor sentiment in companies with significant crypto exposure.

The shares closed the day at $326.42, up 5.6% from previous close.

Is now the time to buy MicroStrategy? Access our full analysis report here, it’s free.

What Is The Market Telling Us

MicroStrategy’s shares are extremely volatile and have had 71 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 4 days ago when the stock dropped 6.1% on the news that a broad sell-off in the cryptocurrency market sent the price of Bitcoin tumbling. 

The software firm, known for its significant Bitcoin holdings, often sees its stock price move in line with the digital asset. The world's largest cryptocurrency fell below $112,000, its lowest point in two weeks, amid a wider crypto rout that wiped out more than $140 billion in market value since the beginning of the week.

MicroStrategy is up 8.8% since the beginning of the year, but at $326.32 per share, it is still trading 31.1% 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 $21,800.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.