MicroStrategy stock explodes alongside Bitcoin rally
Shares of MicroStrategy (MSTR) surged to one-month highs on Tuesday, as Bitcoin’s (BTC) gravitational pull on crypto proxy stocks continued to strengthen following another record-breaking rally for the digital asset.
Shares of the business intelligence firm touched an intraday high of $770 on the New York Stock Exchange, representing a gain of 10% – the highest level since March 11. At current values, MicroStrategy has a total market capitalization of $7.5 billion.
Even with the latest run-up in price, MSTR remains well below all-time highs breached in early February. The stock peaked at $1,315.00 on February 8 before pulling back to sub-$1,000 levels.
MSTR’s rally came just as Bitcoin surged above $63,000 for the first time, setting a new all-time high in the process. Although MicroStrategy’s underlying business has nothing to do with Bitcoin or cryptocurrency, the company has become a corporate flagbearer of BTC after CEO Michael Saylor decided to convert a large portion of the company’s balance sheet into the digital asset.
The company now holds 91,579 BTC, worth roughly $5.8 billion at today’s prices.
On Monday, a filing with the United States Securities and Exchange Commission, or SEC, revealed that MicroStrategy’s board of directors will receive bonus payments in BTC instead of cash. The modified 8-K form states:
“Going forward, non-employee directors will receive all fees for their service on the Company’s Board in bitcoin instead of cash.”
MSTR wasn’t the only crypto proxy stock to rise on Tuesday. Riot Blockchain (RIOT) rose 10% and Marathon Digital Holdings (MARA) rallied 6%.