Shares of Strategy (MSTR), formerly MicroStrategy, opened sharply higher on March 3 as investors reacted to a weekend Bitcoin rally that was fueled by US President Donald Trumpâs crypto reserve plans.Â
MSTR rose by as much as 15% to trade at $295.10, according to Yahoo Finance data. Before March 3, MSTR stock was mired in a two-week downtrend that saw it lose more than 24%.Â
Despite the rally, MSTR stock is still down 51% from its 2024 peak. Source: Yahoo Finance
Since Strategy began accumulating Bitcoin (BTC) in 2020, it has largely traded as a Bitcoin proxy stock. The company has since amassed a whopping 499,096 BTC, making it the worldâs largest corporate Bitcoin holder.Â
Despite its aggressive buying spree in recent months, Strategy did not buy the Bitcoin dip last week, the company said.Â
Strategyâs Bitcoin gambit has made the company one of Wall Streetâs top performers. MSTR stock is up 156% over the past year and has gained more than 1,800% since acquiring its first Bitcoin in August 2020.
âIn our view, a big beneficiary of the Bitcoin reserve (Bitcoin will still be the lionâs share of the reserve) is MSTR,â said Bernstein analyst Gautam Chhugani.Â
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President Trump fuels market rebound
MSTRâs rally came on the heels of a massive crypto market reversal that saw Bitcoin bounce from a low of around $79,000 to a weekend high above $95,000.Â
President Trumpâs social media announcement of a forthcoming âUS Crypto Reserveâ was the main catalyst for the reversal.Â
On March 2, the president said the US crypto reserve would âelevate this critical industry after years of corrupt attacks by the Biden administration.â He said it would include XRP (XRP), Solana (SOL), Cardano (ADA), Bitcoin and Ether (ETH).Â
Source: David Sacks
The Trump administration will host the first White House crypto summit on March 7 to discuss regulations, stablecoins and the potential role of Bitcoin in the financial system.
In the meantime, the US Securities and Exchange Commissionâs new Crypto Task Force has met with several companies to discuss regulations and common industry pain points.Â
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