What Happened?

Shares of business analytics software company MicroStrategy (NASDAQ:MSTR) jumped 22% in the afternoon session after the company added to its Bitcoin position, increasing its overall exposure to the cryptocurrency market amid improving market sentiment fueled by hopes of favorable regulations and policies supporting the crypto industry. 

MicroStrategy announced it bought 27,200 bitcoins at an average price of $74,463 per bitcoin between October 31, 2024, and November 10, 2024. Following the announcement, Bitcoin reached an all-time high of $85,000, though it remains unclear if this surge was influenced by MicroStrategy's purchase or broader market trends.

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What The Market Is Telling Us

MicroStrategy’s shares are extremely volatile and have had 87 moves greater than 5% over the last year. But moves this big are rare even for MicroStrategy and indicate this news significantly impacted the market’s perception of the business. 

The previous big move we wrote about was 14 days ago when the stock gained 6.7% on the news that stocks exposed to the cryptocurrency market soared as momentum improved. Notably, Bitcoin, the most popular crypto asset, edged past the $70,000 level. 

Also, with roughly a week until the U.S. 2024 elections, markets anticipated a potential regulatory review of the crypto space when a new administration is elected. Overall, the sentiment suggests markets are itching for a change.

MicroStrategy is up 395% since the beginning of the year, and at $337.89 per share, has set a new 52-week high. Investors who bought $1,000 worth of MicroStrategy’s shares 5 years ago would now be looking at an investment worth $21,665.

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