Shares of MicroStrategy (MSTR) soared 19% to a record high above $320 after U.S. markets opened Monday following the company’s announcement that it would buy $2 billion in Bitcoin, according to Yahoo Finance.
The world’s largest corporate holder of Bitcoin purchased 27,200 Bitcoin between October 31 and November 10, bringing its total assets to 279,420 BTC, or approximately $23 billion at current market prices.
MicroStrategy’s average acquisition cost for its total Bitcoin assets is approximately $42,800 per BTC, resulting in an unrealized gain of $11.4 billion amid the recent rise in Bitcoin prices.
A company’s stock performance is heavily influenced by Bitcoin’s performance. Bitcoin also hit a new record high of $84,000 on Monday, according to CoinGecko.
MicroStrategy shares are up more than 40% in the last five days and about 400% over the past year. Meanwhile, Bitcoin has seen a 124% year-to-date gain.
The jump is part of an overall market rally following the re-election of Donald Trump and the US Federal Reserve’s recent interest rate cut.
Crypto investors are optimistic about a second Trump administration due to his pro-cryptocurrency stance.
During his election campaign, Trump repeatedly declared support for the crypto industry, demonstrating his intention to make the United States the “crypto capital of the planet” and the “bitcoin superpower of the world.”
Trump has also proposed creating a national bitcoin reserve and creating a presidential advisory council focused on cryptocurrencies. These initiatives are seen as steps to legitimize and support the crypto market at the government level.
Investors are hoping the new administration will bring much-needed clarity to the murky cryptocurrency regulatory landscape, especially given the SEC’s heavy-handed approach to enforcement.
