- MicroStrategy’s stock price jumped over 20% on March 4th as the price of Bitcoin, in which MicroStrategy has heavily invested, continued rising.
- MicroStrategy holds over 19,000 BTC worth around $12.8 billion at current prices. The company continues acquiring more Bitcoin, recently adding 3,000 BTC.
- While MicroStrategy’s long-term outlook is positive due to its large Bitcoin holdings, its stock price remains highly correlated to Bitcoin’s price, suggesting continued short-term volatility.
The share price of business intelligence company MicroStrategy saw a significant increase on March 4th as the price of Bitcoin continued its upward trajectory. MicroStrategy is a major investor in Bitcoin, holding over 19,000 BTC on its balance sheet.
MicroStrategy’s Share Price Jumps Over 20%
MicroStrategy’s stock opened at $1,200 on March 4th, up from $1,079 the previous day. It reached an intraday high of $1,339, representing a gain of over 20% from the prior close. Some of the gain has been attributed to short sellers covering their positions.
MicroStrategy’s Bitcoin Holdings Now Worth $12.8 Billion
With Bitcoin trading above $66,000 on March 4th, MicroStrategy’s holdings are now worth around $12.8 billion. The company has accumulated over 193,000 BTC at an average price of $31,554. MicroStrategy continues to buy Bitcoin, adding 3,000 BTC in late February.
Investor Sentiment on MicroStrategy
Investment bank Benchmark recently set a $990 price target for MicroStrategy, noting that the upcoming Bitcoin halving could further boost the stock. MicroStrategy CEO Michael Saylor has been adamantly bullish on Bitcoin, stating his intent to acquire BTC “forever.”
MicroStrategy Stock Price Outlook
At the time of writing, MicroStrategy was trading around $1,251, up nearly 16% on the day. With Bitcoin in a strong uptrend and the company continuing to accumulate more BTC, the long-term outlook for MicroStrategy’s stock remains positive. However, short-term volatility in both Bitcoin and MicroStrategy can be expected.
Conclusion
MicroStrategy’s stock has benefited from its heavy investment in Bitcoin as the cryptocurrency’s price increases. While some of the one-day gain was driven by shorts covering, the company’s fundamentals and long-term BTC exposure give investors reason for optimism. However, the high correlation between MicroStrategy’s stock and the price of Bitcoin suggests continued turbulence in the near-term.
