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Microstrategy stock in focus as it eyes more BTC purchases – What next?

June 13, 2024
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Microstrategy stock in focus as it eyes more BTC purchases – What next?
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  • MicroStrategy intends to buy more BTC with a recent convertible notes offer. 
  • MSTR’s remain an irresistible short-term bet over BTC. 

On 13th June, MicroStrategy [MSTR] announced a plan to add more Bitcoin [BTC] from proceeds from its private offering of $500 million convertible notes. The senior notes, a type of debt strategy, are due in 2032. Part of the update read, 

“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes.’ 

MicroStrategy has been leveraging debt to ramp up its Bitcoin strategy.

In April, the firm scooped an extra 122 BTC coins at $7.8 million, bringing its overall holdings to 214,400 BTC worth over $14.5 billion based on current market prices. 

Despite other catalysts like the addition to the MSCI Index and the upcoming inclusion of the Russell 1000 Index on 28th June, MSTR stock has religiously followed BTC’s price action. 

However, the stock has emerged as a better short-term bet than BTC. It has outperformed the king coin on several occasions.

MicroStrategy stock price chart position

The MSTR’s market structure was still in a better position despite the current market drawdown after the ‘hawkish’ Fed rate decision. 

MicroStrategy stock

Source: MSTR stock, TradingView

Notably, price action was above the 100-day and 50-day EMAs (Exponential Moving Averages). This demonstrated that MSTR’s short-term and long-term price trends hadn’t weakened yet. 

Additionally, the RSI (Relative Strength Index) hovered above the mid-range, reinforcing muted but above-average buying pressure. But bulls could be tempted by the stochastic RSI, which flirted with oversold territory and could suggest a potential bullish reversal was likely. 

See also  Centralized Mining Pools 'Antithetical to the Ideals That Gave Rise to BTC and the Blockchain Movement' — Tomer Afek

If so, MSTR could soon bounce off the 50-EMA and target $1800 or $2000.

However, if BTC records more losses, the stock could be dragged to the 100-EMA ($1256). The ADX (Average Directional Index) reading below 20 indicated a lack of trend and called for trader caution. 

Despite the market rout and overall price consolidation over the past three months, MSTR still presented better returns than BTC. 

As of press time, on a monthly adjusted basis, MSTR offered +30% gains against BTC’s +7% over the same period. This meant that MSTR offered nearly 4X more returns than BTC. 

MicroStrategy stock

Source: MSTR vs. BTC performance

Next: Curve [CRV] plummets 23% in 24 hours amidst founder’s debt crisis

READ ALSO

Bitcoin nears $91K as buying pressure soars, but challenges emerge

Spot Bitcoin ETF Options – How U.S exposure is set to soar after CFTC’s notice

  • MicroStrategy intends to buy more BTC with a recent convertible notes offer. 
  • MSTR’s remain an irresistible short-term bet over BTC. 

On 13th June, MicroStrategy [MSTR] announced a plan to add more Bitcoin [BTC] from proceeds from its private offering of $500 million convertible notes. The senior notes, a type of debt strategy, are due in 2032. Part of the update read, 

“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin and for general corporate purposes.’ 

MicroStrategy has been leveraging debt to ramp up its Bitcoin strategy.

In April, the firm scooped an extra 122 BTC coins at $7.8 million, bringing its overall holdings to 214,400 BTC worth over $14.5 billion based on current market prices. 

See also  Ethereum, Bitcoin ETFs face sudden outflows; Is a market shift in play now?

Despite other catalysts like the addition to the MSCI Index and the upcoming inclusion of the Russell 1000 Index on 28th June, MSTR stock has religiously followed BTC’s price action. 

However, the stock has emerged as a better short-term bet than BTC. It has outperformed the king coin on several occasions.

MicroStrategy stock price chart position

The MSTR’s market structure was still in a better position despite the current market drawdown after the ‘hawkish’ Fed rate decision. 

MicroStrategy stock

Source: MSTR stock, TradingView

Notably, price action was above the 100-day and 50-day EMAs (Exponential Moving Averages). This demonstrated that MSTR’s short-term and long-term price trends hadn’t weakened yet. 

Additionally, the RSI (Relative Strength Index) hovered above the mid-range, reinforcing muted but above-average buying pressure. But bulls could be tempted by the stochastic RSI, which flirted with oversold territory and could suggest a potential bullish reversal was likely. 

If so, MSTR could soon bounce off the 50-EMA and target $1800 or $2000.

However, if BTC records more losses, the stock could be dragged to the 100-EMA ($1256). The ADX (Average Directional Index) reading below 20 indicated a lack of trend and called for trader caution. 

Despite the market rout and overall price consolidation over the past three months, MSTR still presented better returns than BTC. 

As of press time, on a monthly adjusted basis, MSTR offered +30% gains against BTC’s +7% over the same period. This meant that MSTR offered nearly 4X more returns than BTC. 

MicroStrategy stock

Source: MSTR vs. BTC performance

Next: Curve [CRV] plummets 23% in 24 hours amidst founder’s debt crisis
Tags: BTCEyesFocusMicroStrategyPurchasesStock

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Tezos 2023 Outlook: An Overview of Tezos (XTZ)

Tezos 2023 Outlook: An Overview of Tezos (XTZ)

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UK risks regulating NFTs the wrong way, says Mintable CEO

UK risks regulating NFTs the wrong way, says Mintable CEO

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Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

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How to Earn Keys to Boost Your HMSTR Airdrop

How to Earn Keys to Boost Your HMSTR Airdrop

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The Hottest Investment Trend of 2025! How Cloud Mining Can Turn Ordinary People into Millionaires?

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