UpdatesApr 23, 2023

MicroStrategy more than doubled its share price in 2023 with Bitcoin

The world's largest corporate BTC holder among public companies has experienced an increase in the value of its shares this year.

MicroStrategy's share price more than doubled in 2023. This was accompanied by a significant increase in the value of Bitcoin (BTC). The oldest cryptocurrency from the January low to current levels experienced a jump in value of about 80%. It also turns out that large financial institutions such as Bank of America or Fidelity have increased their exposure to MicroStrategy, thus making a passive investment in BTC.

MicroStrategy achieved a 200% share price increase in 2023

The American company providing business analytics, cloud services and mobile software, which is also the largest holder of Bitcoin among public companies, has experienced a significant increase in its share price this year. This was due to the positive sentiment on the digital currency market, which was caused primarily by the banking crisis in the United States.

Since the beginning of January 2023, the price per share of MSTR has increased from around $145 to as much as $340, according to data from Nasdaq. Currently, after a slight correction, MicroStrategy shares are valued on the market at $ 329.85 per share. The change from the beginning of the year to the peak recorded last Thursday is over 130%. The price increase to current levels is about 127%.

Moreover, exposure to MicroStrategy has recently been increased by financial giants such as Bank of America and Fidelity, among others. In this way, these financial companies acquired a kind of passive investment in BTC. So far, MicroStrategy has accumulated as much as about 140,000 BTC with an average purchase price for one Bitcoin coin of $29,803.

Uptrend in the BTC market

The value of the oldest of the cryptocurrencies has increased by about 80% this year from around $16,500 to levels above $30,000 per coin. Currently, BTC changes hands around USD 29.1 thousand. This means that MicroStrategy's investment in Bitcoin brings the company a slight unrealized loss. MicroStrategy has plans to hold BTC in the long-term range. Although the management of this company has repeatedly said that they have no plans to sell the digital currency they own, at the end of 2022 they made an exception to this rule. This happened as a result of converting some Bitcoins into fiat currency. This move was made due to the tax benefits of such behavior.

Some experts see MicroStrategy's investment plan for the oldest cryptocurrency as highly risky. For example, Seeking Alpha's financial blogger Pacifica Yield stated that "dilution" of shares to buy digital assets that lose money on is not a friendly thing for shareholders who have trusted the company. Such a situation may become more objective when Bitcoin starts a downward trend again.

Technical analysts related to the cryptocurrency industry, on the other hand, say that the MSTR stock may possibly experience a 20% correction during the second quarter of this year. They have set a resistance range from $320 to $340 where limited breakout attempts are likely. Their current guess is that if there is a correction, the stock could pull back toward an exponential moving average below $260 per share.