MicroStrategy Stock Hits New 52-Week Highs Before Retracing: Here’s What’s Happening – MicroStrategy (NASDAQ:MSTR)

MicroStrategy Incorporated Inc. MSTR Shares hit new 52-week highs in early trading on Monday before falling back. Here’s what you need to know:

What you should know: Shares of MicroStrategy hit a 52-week high on Monday, driven by a rise in Bitcoin prices, but fell in the afternoon session. Despite this downward move, the stock remains up around 220% year-to-date (YTD).

The company has long been considered a proxy for Bitcoin due to its significant Bitcoin holdings, which continue to solidify the performance of its stock. The company is the largest listed Bitcoin holder with 252,220 BTC (as of September 20, 2024).

What’s up: The price of Bitcoin is up more than 4% in the last 24 hours, boosting strength in the overall crypto market and related stocks like MicroStrategy. Bitcoin is up nearly 10% in the last month and is still about 12% below its all-time high.

This crypto rally follows ETF inflows, with approximately $419 million flowing into Bitcoin ETFs last week. Meanwhile, short Bitcoin products experienced $6.3 million in outflows. Political factors may also be at play, as Republican candidates, who are often viewed as more crypto-friendly, have gained ground in recent polls.

Analyst reaction: Additionally, analysts have pointed out that Bitcoin’s technical setup could lead to a breakout. Crypto analyst Michael van de Poppe He recently noted that if Bitcoin can break $64,000, it could trigger a major uptrend. Barclays recently raised its price target on MicroStrategy from $173 to $225, joining a list of other companies that have raised their targets on the stock in recent weeks.

What else: MicroStrategy has also attracted attention on social media platforms such as StockTwits and WallStreetBets. The stock was listed on Benzinga’s Stock Whisper Index last week.

MSTR price action: According to Benzinga Pro, MicroStrategy shares fell 4.49% to $203.04 at the time of writing.

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