Bitcoin (BTC) Focused MicroStrategy MSTR Stock Hits 25-Yr High Before AI and Business Intelligence Firm’s Q3 Earnings Report

MicroStrategy (NASDAQ:MSTR) company stock recently surged to a 25-year high at $245, which has notably come before the release of AI-focused business intelligence company’s Q3 earnings report. MicroStrategy’s stock strongly aligns with major Bitcoin (BTC) developments.

As crypto and Bitcoin industry observers would know, MicroStrategy began gaining exposure to the BTC markets around the time of the COVID outbreak of 2020. This was the time when many new players entered the nascent crypto-assets sector in order to hedge against unprecedented inflation and socioeconomic uncertainty.

Recntly, MicroStrategy (MSTR) stock surged right after the US markets opened this past Friday, increasing from about $235 to around $245, which is notably its highest during the last 25 years. What’s behind this rally? It’s not quite clear, but given that we are approaching the US elections, there’s a great deal of speculation as to what will happen to the crypto markets and well as the broader financial sector.

The significant rise in the stock price also comes right before the business intelligence firm’s latest Q3 earnings report, which is expected to be published this coming Wednesday.

Following the surge, MSTR had retreated to about $241-242, however, it was  doing better overall than the S&P 500.

Available data reveals that MicroStrategy’s company stock had surged by nearly 300% YTD meanwhile the S&P 500 recorded gains of a more modest 35-40% in the same timeframe. However, it still remains to be seen as to whether how sustainable these gains are in the long-term as they do not seem to be based on any sound / fundamental developments.

During the last 5 years, MicroStrategy has notably posted an enormous 1,500%+ rise in its company stock price, which is far greater than the S&P 500’s nearly 95% gain. But again, it is still uncertain as to whether future performance will be aligned with past performance.

It’s worthwhile to also note that MicroStrategy’s company stock typically performs well (or not so well) in line with the Bitcoin and larger digital assets ecosystem, because of the AI and business intelligence firm’s links/association with BTC, the flagship crypto-asset.

As per the MSTR tracker (which is the MSTR/BTC ratio), which offers informative insights into how MicroStrategy’s stock value performs when compared to BTC’s price changes, notably reached a high of 0.354.

This suggests strongly that the tech firm’s stock has been doing quite well compared to BTC.

The tech firm’s net asset value or NAV has experienced substantial growth as well during this same period, with the NAV premium starting to get closer to 3, which is reportedly the highest level in the past 3 years.

In the past few days, BTC had actually surpassed the $69K mark but very briefly and then quickly retreated to below $67,000. But Bitcoin has not really performed as well during this current bull market because the flagship crypto barely surpassed its previous all-time high to reach almost $74K. Moreover, Bitcoin miners have faced considerable challenges due to lack of profitability and other operational challenges.

At this point, however, it may not be realistic to expect much more BTC price appreciation given that there are not too many catalysts besides the upcoming US elections (which could lead to price developments in both the extreme positive or negative directions).



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