MicroStrategy Stock Surges as Bitcoin Hits New Highs, Reaching Levels Not Seen Since July

MicroStrategy Incorporated (MSTR) shares are experiencing a surge on Wednesday, fueled by Bitcoin’s (BTC/USD) triumphant return to levels not seen since July, surpassing $68,000. This positive momentum is directly linked to MicroStrategy’s significant Bitcoin holdings, making the company a popular proxy for the cryptocurrency. As of September 19th, MicroStrategy boasts a substantial reserve of 252,220 Bitcoin, making its stock price highly sensitive to fluctuations in the cryptocurrency market.

The recent surge in Bitcoin’s price is further amplified by substantial inflows into Bitcoin exchange-traded funds (ETFs). On Monday, a single day saw a record-breaking net inflow of $555.8 million, marking the highest activity since July. This influx of capital indicates growing investor confidence in Bitcoin and its potential for continued growth.

Adding to the positive sentiment, MicroStrategy has announced its upcoming release of third-quarter earnings for 2024 on October 30th after market close. The company will host a video webinar at 5 p.m. ET on the same day to discuss the results. Analysts anticipate revenue of $122.66 million and a loss of 11 cents per share, though it’s worth noting that MicroStrategy has missed analyst estimates on both revenue and earnings in the previous two quarters.

How to Invest in MicroStrategy

If you’re interested in taking part in the MicroStrategy market, either by purchasing shares or exploring alternative investment strategies, there are a few ways to approach it.

Buying Shares:

The most straightforward method is to buy shares through a brokerage account. You can find a comprehensive list of potential trading platforms online. Many of these platforms allow fractional share purchases, enabling investors to own portions of stock without buying an entire share. As of publishing time, MicroStrategy shares are trading at $198.75, meaning $100 would secure you 0.53 shares of stock.

Short Selling:

If you’re looking to bet against the company’s performance, the process becomes more complex. This typically requires access to an options trading platform or a broker that allows short selling. Shorting involves borrowing shares and immediately selling them, hoping to repurchase them later at a lower price to profit from the difference. You can find detailed information on the shorting process online. Alternatively, if your broker offers options trading, you can either buy a put option or sell a call option at a strike price higher than the current share price. Both options allow you to profit if the share price declines.

MSTR Price Action:

At the time of publication, MicroStrategy stock is experiencing a 2.34% increase, trading at $198.75, according to data from Benzinga Pro. The company’s strong performance today is a testament to the growing influence of Bitcoin on traditional markets and the continued investor interest in MicroStrategy’s significant Bitcoin holdings.