Key Points
- MSTR stock sees a mid-week boost due to positive U.S labor data and Bitcoin’s performance.
- QCP Capital warns of potential price volatility due to upcoming U.S-China tariff talks.
The stock of Strategy, formerly known as MicroStrategy and now referred to as MSTR, has seen significant gains recently. This is largely due to a mid-week uptick in equity markets and the performance of Bitcoin (BTC).
The Nasdaq composite experienced a minor bounce of 0.81% on Tuesday, while the S&P 500 Index (SPX) rose by 0.58%. This marked a weekly rally of 2%.
Positive Labor Data and Bitcoin’s Influence
Crypto trading firm QCP Capital noted that this rebound was spurred by positive U.S labor market data. A surprising increase in job openings ahead of Friday’s pivotal payrolls print has buoyed risk sentiment.
However, MSTR’s Tuesday rally was also influenced by the announcement of a new preferred stock, Stride (STRD), to acquire more BTC. This move, according to Metaplanet’s Dylan LeClair, would allow Strategy to raise more capital.
Strategy’s BTC Bet and Market Volatility
Strategy now owns 580,955 BTC, valued at $60 billion, with an acquisition cost of $40 billion. This means the firm is sitting on unrealized profits of $20 billion at current prices.
Nevertheless, QCP Capital warned that the months of June and Q3 could be rocky for BTC due to renewed tariff headlines and the U.S debt ceiling debate. This could potentially affect MSTR stock’s close correlation with Bitcoin.
At press time, the stock was valued at $376, down 3% following BTC’s brief dip below $105k.
