"After all, where Bitcoin goes, MSTR will travel. However, Bitcoin is again showing signs of life, tacking on about $817 this morning, which just sent shares of MSTR up about $5.23 on the day. Fueling momentum, MSTR still believes Bitcoin could head higher again, which would explain why the company just bought another $980 million worth of Bitcoin on the pullback."
"The firm also believes that concerns about the company are overdone, especially given its over-collateralized balance sheet and 21 months of cash reserves, as noted by Investing.com. Plus, those fears of losing its status on the Nasdaq 100 are over. Just days ago, MSCI was considering excluding public companies where more than 50% of their assets are tied to digital assets. Fortunately, MSTR was able to hold its spot and live another day."
Bitcoin fell from about $125,000 to $87,256 due to macroeconomic factors, risk-off sentiment, profit taking, and fears of an AI bubble. Related stocks such as MicroStrategy (MSTR) dropped from $360 to $162 as MSTR's share price tracked Bitcoin's decline. MSTR repurchased about $980 million of Bitcoin during the pullback and analysts at Bernstein maintained an outperform rating with a $450 price target, citing an over-collateralized balance sheet and 21 months of cash reserves. MSCI considered excluding firms with more than 50% of assets tied to digital assets but MSTR retained its Nasdaq 100 status. Coinbase also rebounded after Bitcoin's recovery and showed solid Q3 earnings.
Read at 24/7 Wall St.
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