MSTR stock pops 15% following Bitcoin weekend rally
Shares of Strategy (MSTR), previously MicroStrategy, opened sharply greater on March 3 as buyers reacted to a weekend Bitcoin rally that was fueled by US President Donald Trump’s crypto reserve plans.
MSTR rose by as a lot as 15% to commerce at $295.10, in response to Yahoo Finance information. Before March 3, MSTR stock was mired in a two-week downtrend that noticed it lose greater than 24%.
Despite the rally, MSTR stock remains to be down 51% from its 2024 peak. Source: Yahoo Finance
Since Strategy started accumulating Bitcoin (BTC) in 2020, it has largely traded as a Bitcoin proxy stock. The firm has since amassed a whopping 499,096 BTC, making it the world’s largest company Bitcoin holder.
Despite its aggressive shopping for spree in latest months, Strategy didn’t purchase the Bitcoin dip final week, the corporate mentioned.
Strategy’s Bitcoin gambit has made the corporate certainly one of Wall Street’s prime performers. MSTR stock is up 156% over the previous yr and has gained greater than 1,800% since buying its first Bitcoin in August 2020.
“In our view, a big beneficiary of the Bitcoin reserve (Bitcoin will still be the lion’s share of the reserve) is MSTR,” mentioned Bernstein analyst Gautam Chhugani.
Related: Saylor’s Strategy proposes $2B convertible be aware providing to purchase extra Bitcoin
President Trump fuels market rebound
MSTR’s rally got here on the heels of a large crypto market reversal that noticed Bitcoin bounce from a low of round $79,000 to a weekend excessive above $95,000.
President Trump’s social media announcement of a forthcoming “US Crypto Reserve” was the primary catalyst for the reversal.
On March 2, the president mentioned the US crypto reserve would “elevate this critical industry after years of corrupt attacks by the Biden administration.” He mentioned it might embody XRP (XRP), Solana (SOL), Cardano (ADA), Bitcoin and Ether (ETH).
Source: David Sacks
The Trump administration will host the primary White House crypto summit on March 7 to debate rules, stablecoins and the potential position of Bitcoin within the monetary system.
In the meantime, the US Securities and Exchange Commission’s new Crypto Task Force has met with a number of corporations to debate rules and customary business ache factors.
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