MSTR stock recently recorded a noteworthy recovery. Formerly Microstrategy, the stock price noted a $352 press time price tag.
The price was equivalent to a 20% upside from its lowest price point in September. This latest recovery comes amidst a wave of heavy accumulation among institutions.
This factor also fueled the latest Bitcoin price rally. This was the sharpest recovery that the stock price achieved since July.
MSTR stock price still had room for more upside before retesting previous highs.
For example, it could still achieve a 30% premium from its current price tag if it retests July highs, or about 50% to its November 2024 peak.
Nevertheless, Strategy owes this latest rally to the recent Bitcoin price upside, which was characterized by robust institutional demand.
The bullish outcome also allowed MicroStrategy to benefit greatly, due to its heavy Bitcoin exposure. But just how much has Strategy (MSTR) stock benefited from the latest BTC upside?
Strategy’s Bitcoin Net Asset Value Closed at a New all-time high on Thursday
Strategy Chairman Michael Saylor revealed that the company’s net asset value (NAV) closed at $77.4 billion on Thursday.
This was also a milestone moment because it was the company’s highest NAV figure.
Saylor also noted that the company was able to achieve the milestone in a relatively short time. The achievement also underscored the rapid pace at which the company pulled off this latest recovery.
For reference, Bitcoin’s NAV at the end of 2020 was $2.1 billion. A 3,580% return within the last 5 years. The Company does not appear to be slowing down despite the impressive performance.
Strategy to Tap into Robinhood to Attract More Liquidity Through STRC
Strategy recently announced that STRC is now available for trading on the Robinhood app. This could signal that the company is now available for retail traders since this is Robinhood’s biggest clientele.
STRC is the company’s Series A perpetual stretch preferred stock with a variable interest rate. Strategy uses this stock mostly to raise capital for more Bitcoin purchases.
This means the company aims to conduct more Bitcoin purchases in the next few weeks or months.
The stock’s variable rate allows Strategy to adjust the dividend rate. This feature allows the company to balance the stock price relative to the dividend payout.
It is particularly useful during a Bitcoin downtrend because during such times, the company may struggle to secure enough cash flow. Funding dividends during such times may be challenging.
However, the stock becomes even more appealing during an uptrend courtesy of the dividends offered. This also allows the company to pump more liquidity into BTC during a bullish phase.
The STRC stock price exchanged hands at $98.97 at the time of observation.
Will MSTR stock push to new highs this time? This will depend on whether the market will maintain an uptrend. Recent market sentiment suggested that the bull market was far from being overheated.
Moreover, experts predict that Bitcoin price will be overall bullish in October. The cryptocurrency has historically built up bullish momentum during the years where Q3 concluded in the green.
Interestingly, Bitcoin achieved a 6.42% uptick in Q3 this year. The cryptocurrency may thus be headed for another bullish phase in the next 4 weeks if it maintains its historic trend.
The MSTR stock price could thus be headed for another uptrend if BTC price extends its bullish momentum.