Shares of business analytics software company MicroStrategy (NASDAQ:MSTR) rose 22% in the afternoon session after the company increased its Bitcoin position, increasing its overall exposure to the cryptocurrency market, amid improving market sentiment fueled through the hope of favorable regulations and policies to support the market. crypto industry.
MicroStrategy announced that it purchased 27,200 bitcoins between October 31, 2024 and November 10, 2024 at an average price of $74,463 per bitcoin. Following the announcement, Bitcoin reached an all-time high of $85,000, although it remains unclear whether this increase was influenced by the purchase of MicroStrategy or broader market trends.
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MicroStrategy’s stock is extremely volatile, having seen 87 moves of more than 5% in the past year. But such big moves are rare even for MicroStrategy and indicate that this news has had a significant impact on the company’s perception of the market.
The previous big move we wrote about was 14 days ago, when shares gained 6.7% on news that stocks exposed to the cryptocurrency market soared as momentum improved. Notably, Bitcoin, the most popular crypto asset, crossed the $70,000 level.
Furthermore, with about a week until the 2024 US elections, markets were anticipating a possible overhaul of cryptocurrency regulations when a new administration is elected. Overall, sentiment suggests that markets are hungry for change.
MicroStrategy is up 395% year-to-date, hitting a new 52-week high at $337.89 per share. Investors who bought $1,000 worth of MicroStrategy stock five years ago would now be looking at an investment worth $21,665.
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