What's Going On With MicroStrategy Stock As Bitcoin Soars?

MicroStrategy Incorporated MSTR shares are trading higher Monday amid a rise in the price of Bitcoin BTC/USD. Here's a look at what to know.

What To Know:

The Bitcoin rally picked up steam over the weekend, and the cryptocurrency is currently trading above the $65,000 mark. 

MicroStrategy is the world's largest institutional holder of Bitcoin, having acquired 193,000 Bitcoins since 2020. According to SEC filings, MicroStrategy bought an additional 3,000 Bitcoins at a cost of $155.4 million between Feb. 15 to 25. The company's portfolio has a cost basis of $31,544 per Bitcoin and a total value of over $6 billion. 

MicroStrategy's chairman, Michael Saylor, is a vocal Bitcoin proponent and has said that he aims to make the company the "world's first Bitcoin development company."

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MSTR Stock Prediction 2024:

MicroStrategy’s revenue growth in FY23 was -0.61%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.3%, growing 0.9% from last year. The unemployment rate was most recently reported as 3.7%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for MicroStrategy stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this stack up against MicroStrategy's peers?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. MicroStrategy operates in the Information Technology sector. The stock has experienced average annual growth of 28.09% compared to the 11.38% average of its peer companies. This is above the broader sector movement of MicroStrategy.

MSTR Price Action: According to Benzinga Pro, MicroStrategy shares are up 19% at $1,284.63 at the time of publication.

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