Why Bitcoin Whale MicroStrategy (MSTR) Stock Price Is Soaring?

Microstrategy (MSTR) stock price has increased by over 39.75% over the past 30 days, is it because of Bitcoin? The company holds more than $4.6 billion worth of bitcoin (BTC) and is one among the top aggregators of Bitcoin in recent years. 

Crypto Stocks Surge Over Bitcoin ETF Rush

The announcement that Cboe’s BZX Exchange and BlackRock had resubmitted its applications for several spot bitcoin exchange-traded funds (ETFs) a few days ago, has sparked a rally in bitcoin-related crypto stocks this month. However, the stock price of MicroStrategy has been going up in 2023 and the upcoming Bitcoin halving might be the reason for that.

A research note published recently by Hamburg-based Berenberg Capital Markets identified the imminent Bitcoin halving as a potential catalyst for the share price of Microstrategy. Berenberg predicts a significant increase in the stock price of Bitcoin maximalist Michael Saylor’s business following the fourth Bitcoin halving. 

Currently, $430 is Berenberg’s relatively bullish price estimate for $MSTR stock [NASDAQ: MSTR]. The investment bank predicts that the share price of the company will reach an 18-month high. The stock was up more than 7% over the previous 24 hours and was trading at $407.7 at the time of writing. 

Source: Google

Previous patterns indicate that the stock of Microstrategy responds to changes in Bitcoin’s price. The share price of the software company typically declines in tandem with a decline in BTC. 

Events that cut coin issuance rates by half significantly slow the rate at which new tokens enter the market. On April 26, 2024, the fourth Bitcoin halving is anticipated to take place. According to TradingView, Microstrategy has increased by more than 181% since the start of the year. 

More Plans On Bitcoin?

It is also important to note that the company’s recent stock price growth coincides with plans announced by Saylor in late December for the launch of applications and solutions powered by the Bitcoin Lightning Network in 2023. These include services for enterprise marketing, internal corporate controls, and online content monetization.