MicroStrategy Stocks Surges Boosted by Bitcoin Jump


April 14, 2021 | AtoZ Markets Just one day after an 8-K filing with the US SEC where MicroStrategy announced that non-employee board members are to be paid in Bitcoin, MSTR rallies almost 10%.

Shares of MicroStrategy Inc. (MSTR) shot to one-month highs on Tuesday, putting it on track for its fourth day of gains. The surge was boosted by the 5.1% jump in Bitcoin, as the king of crypto edged past another record high and is nearing €53,000.

MicroStrategy Share’s 4 Day Winning Streak

This jump in MSTR means the stock is up over 18% after its 4-day winning streak. The shares of MicroStrategy reached an intraday high on the New York Stock Exchange, touching $770. This level is the highest since March 11th, and at these levels the BI firm has a total market cap of $7.5 billion.

Despite hitting an intraday high the share price remains well below February’s all-time high when the stock peaked to $1,315 before it pulled back to sub-$1,000 levels.

Bitcoin & Stock Correlation

Bitcoin’s gravitational pull with proxy stocks continues to strengthen as the digital asset has begun another record-breaking rally. MSTR wasn’t the only stock to shine early this week. Riot Blockchain (RIOT) is up 10% and a 6% rally from Marathon Digital (MARA) has also made the headlines.

In just 12 months MicroStrategy stock has soared 534.3%. While Bitcoin who has dominated the limelight is up over 800% and the S&P 500 has gained 49.6%. Although the correlation coefficient between MicroStrategy’s shares and Bitcoin has dropped since the end of February the figure sits at 0.94 over the past year.

MicroStrategy Continues to Bet Big on Bitcoin

The MSTR’s rally came just as BTC hit over €52,000, another milestone for the crypto. Although MicroStrategy’s underlying business has nothing to do with cryptocurrency, the enterprise software company is becoming a corporate flagbearer.

The firm’s backing of Bitcoin began last August when it procured its first batch of the digital coin. Since then, the firm has become more and more hot on the crypto and continues to amass more Bitcoin as it soars in value.

To date, MicroStrategy holds approximately 91,957 BTC which is worth in and around $5.8 billion (at the time of writing). The latest purchase came in April when the firm purchased another 253 Bitcoins ($15 million). This procurement brings the firms total market value in Bitcoin to over 81%.

It was also announced this week that MicroStrategy’s board of directors will receive bonus payments in Bitcoin. In a filing with the SEC, the modified 8-k stated “Going forward, non-employee directors will receive all fees for their service on the Company’s Board in bitcoin instead of cash”.

The Cryptocurrency space has seen huge growth over the last decade. We continue to see new milestones, better adoption and all-time price hikes, there really is no better time to buy Bitcoin.

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