MicroStrategy's stock soars with rising Bitcoin value, but traders warned of volatility

From Investing.com
October 12, 2024 11:30 am:

MicroStrategy’s stock continues to soar as the value of Bitcoin rises, reaching a 25-year high. The company holds 252,220 BTC, worth almost $9.9 billion at $39,266 per Bitcoin. MicroStrategy’s NAV premium over its Bitcoin holdings has hit a high not seen since February 2021.

Since the launch of Bitcoin ETFs in January, MicroStrategy stock has surged by over 240%, outperforming Bitcoin, which has dropped 16% since its record high in March. This discrepancy has raised eyebrows in the market and sparked discussions among traders and analysts about the correlation between the two assets.

Legendary trader Peter Brandt warned against chasing the recent surge in MicroStrategy stock, citing its volatility and its close ties to Bitcoin’s performance. Despite the disconnect, Brandt believes MicroStrategy’s long-term trajectory will align with Bitcoin’s, emphasizing the stock’s dependence on the cryptocurrency’s movement.

MicroStrategy’s stock price now stands at 0.0030 times the price of Bitcoin, the highest ratio since its foray into Bitcoin in 2020. The company’s “Bitcoin Yield” KPI rose to 5.1% in Q2, 2024, showcasing its commitment to harnessing the potential of digital assets for long-term growth in value.

Read more at Investing.com: Legendary Trader Peter Brandt Weighs In on MicroStrategy’s BTC-Fueled Rally By U.Today