Why Bitcoin Stock MicroStrategy Stock Is Climbing

MicroStrategy Incorporated MSTR shares are trading higher Monday after the company acquired an additional 3,000 Bitcoin BTC/USD for approximately $155.4 million in cash. 

The Details:

According to an SEC filing, MicroStrategy acquired the bitcoins between Feb. 15 and Feb. 25 at an approximate price of $51,813 per bitcoin. MicroStrategy now holds approximately 193,000 bitcoins, which were acquired at an aggregate purchase price of approximately $6.09 billion and an average purchase price of approximately $31,544 per bitcoin.

MicroStrategy was among several crypto-related stocks surging in Monday’s session as Bitcoin traded above the $53,000 level. Shares have gained nearly 25% year-to-date as the rally continues following the approval of several spot bitcoin ETFs in early January and as excitement surrounding the next bitcoin halving event builds.

According to data from Benzinga Pro, shares are trading well-above the stock’s 50-day moving average of $581.31 and near its 52-week high $806.78 

Related News: Wedbush’s Dan Ives Says ‘AI Party Just Starting’

MSTR Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at MicroStrategy, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For MicroStrategy, the 200-day moving average sits at $431.83, according to Benzinga Pro, which is below the current price of $775.98. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

MSTR Price Action: According to Benzinga Pro, MicroStrategy shares are up 13.7% at $781.85 at the time of publication.

Image: Master Tux from Pixabay