Key takeaways
- MicroStrategy shares closely align with Bitcoin’s market performance, hitting new highs.
- The company holds over 252,000 BTC, which influences its market strategy and valuation.
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MicroStrategy (MSTR) stock just hit a 25-year high of around $255 after U.S. markets opened Monday, according to data from Yahoo Finance. This rise occurred amid Bitcoin’s price rise to $69,000, sparking optimism that the uptrend will continue throughout October.
The MSTR/BTC ratio, which tracks the performance of MicroStrategy stocks against Bitcoin, also hit a new high of 0.366, according to the MSTR tracker.
The rise indicates that MicroStrategy stock has performed favorably relative to Bitcoin. Last Friday, the ratio reached a high of 0.354, when MSTR surged to $245, as reported by Crypto Briefing.
The company’s net asset value (NAV) has increased, with a net asset value premium approaching the 3 mark, its highest level since early 2021.
Since MicroStrategy is closely tied to Bitcoin, its stock performance tends to follow the Bitcoin market. The stock is up 295% year to date, eclipsing the 22% rise in the S&P 500. The value of Bitcoin itself has doubled over the same period.
If MicroStrategy’s Bitcoin playbook proves successful, it could propel its stock price to new highs in the future.
MicroStrategy is currently the largest holding company in Bitcoin with over 252,000 BTC, valued at approximately $17 billion. Michael Saylor, the company’s head of Bitcoin strategy, aims to transform MicroStrategy into a leading Bitcoin bank that could reach a multi-billion dollar valuation.
Other crypto stocks also rebound
Several other crypto stocks also saw a sharp rise after markets opened.
IREN (formerly Iris Energy) shares rose nearly 18%, while TeraWulf and MARA Holdings rose 11% and 9%, respectively.
Leading Bitcoin miner CleanSpark announced a 10% gain in its stock price. Meanwhile, Coinbase, a major cryptocurrency exchange, also saw a 5% gain.
Market optimism was largely driven by a recent 24-hour rise in the price of Bitcoin, which reignited discussions about the potential for an “Uptober.”
Historically, October has been a strong month for Bitcoin, with many traders and investors hoping for a repeat performance. The current bullish momentum appears to match the historical trend, suggesting that an Uptober could still be on the cards.
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