Recent economic resurgence has been widely connected to the victory of Donald Trump, yet analysts suggest that various other factors are contributing to this growth, moving beyond the impact of Trump’s win.
Among these factors is the remarkable ascent of Bitcoin [BTC], which is causing ripples in the financial sector.
MicroStrategy’s Stock Performance
MicroStrategy (MSTR), under the leadership of Michael Saylor, witnessed an impressive 26% increase in its stock price on the 11th of November, hitting a new peak surpassing $351.
While the day ended with MSTR at $340, after-hours trading saw it peak at $354, as reported by Google Finance.
Currently, MSTR is showing a 25.73% surge, trading at $340, exceeding a previous peak established almost 25 years ago, with an exceptional $12 billion in trading volume.
This significant surge followed the company’s announcement of its latest acquisition, helping the firm attain historic highs in both valuation and trading volume, particularly notable for holding the largest corporate treasury reserve in Bitcoin.
MicroStrategy’s Approach to Bitcoin
According to MicroStrategy founder Michael Saylor, the company has significantly advanced its BTC acquisition strategy.
From the 31st of October to the 10th of November, MicroStrategy procured over $2 billion worth of Bitcoin, solidifying its position as the biggest corporate holder of the cryptocurrency.
The company’s current Bitcoin holdings of 279,420 BTC, valued at around $24.3 billion, underscore its unwavering dedication to BTC, integrating the cryptocurrency as a core asset in its financial portfolio.
Reacting to this development, Vivek, the founder of Bitgrow lab, remarked,
“MicroStrategy has achieved a new all-time high after a gap of 25 years.”
Adding to the dialogue was another user, Wayne Vaughan, who observed,
“MicroStrategy is converting its capital into Bitcoin more effectively than any Bitcoin miner.”
Further Implications
Bitcoin’s impressive 11% hike to $89,500 on 11th November significantly influenced the overall market, leading to a record-breaking $38 billion daily trading volume across U.S. spot BTC ETFs, including key players like MicroStrategy (MSTR) and Coinbase Global (COIN).
During the early hours of trading on the 11th of November, MSTR and COIN emerged among the top five most-traded stocks, outstripping trading activities of tech giants such as Apple and Microsoft, as highlighted by Balchunas.
MicroStrategy’s Journey Thus Far
Established in 1989 as a software company, MicroStrategy has pivoted into a significant Bitcoin-oriented entity since its foray into BTC acquisitions in August 2020.
This strategic shift has considerably elevated the company’s stock price, surpassing its previous peak of $313 recorded in March 2000.
In the previous month, MicroStrategy unveiled its “21/21 plan,” aiming to raise $42 billion for further Bitcoin acquisitions through capital influxes.
Despite skeptics’ reservations, the company’s expanding influence in the crypto market indicates that the impact of Bitcoin on traditional finance is only in its nascent stages.