MicroStrategy Stock Spikes On Record Bitcoin Haul Amid Trump-Linked Crypto Rally: Retail Gets Buzzing

Shares of MicroStrategy, Inc. ($MSTR) surged by as much as 10% on Monday after the company announced a massive new Bitcoin ($BTC.X) purchase. 

The Michael Saylor-led firm, before the opening bell, revealed in an SEC filing that it acquired 51,780 bitcoin between Nov. 11 and Nov. 17 at an average price of $88,627 per BTC. 

This brings MicroStrategy’s total bitcoin holdings to 331,200 BTC, accounting for over 1.5% of the roughly 20 million bitcoins currently in circulation. 

At current market prices, the company’s bitcoin stash is valued at approximately $30 billion, which is roughly equivalent to 40% of the company’s current market capitalization.

The acquisition was funded by proceeds from the recent sale of 13.6 million shares, generating net proceeds of around $4.6 billion. 

MicroStrategy reported impressive BTC yield metrics, with a 20.4% yield from October to mid-November and a 41.8% yield for the year-to-date period. 

BTC yield measures the percentage change in the ratio of the company’s bitcoin holdings to its diluted shares outstanding.

MicroStrategy’s stock, which is now just $10 below its all-time high, has skyrocketed over 50% since the U.S. elections on Nov. 5, significantly outpacing Bitcoin’s 30% rally in the same period. 

The surge in both Bitcoin and MSTR shares is linked to Donald Trump’s presidential win, which has sparked optimism in the crypto community. 

Trump has pledged to be a “crypto president,” promising to ease regulations, establish a U.S. strategic bitcoin reserve, and protect crypto companies from banking restrictions.

MSTR sentiment and message volume Nov 18 as of 12:30 pm ET | source: Stocktwits

On Stocktwits, retail sentiment for MSTR flipped from ‘bearish’ to ‘bullish’ on Monday afternoon, with an uptick in in message volume. 

Some enthusiastic users shared their profitable trades, reflecting renewed confidence in MicroStrategy’s bitcoin strategy:

Others shared their awe about the stock’s recent rally.

Saylor, a staunch bitcoin advocate, forecasts the cryptocurrency reaching $100,000 by the year end and a staggering $13 million in 21 years. 

There is only a limited supply of the cryptocurrency left, with approximately 19.8 million out of 21 million bitcoins already mined.

Bitcoin has more than doubled in value this year, while MicroStrategy’s stock has seen a remarkable five-fold increase, solidifying its position as one of the biggest corporate bitcoin holders in the world.