MicroStrategy Stock Soars 3% as Bitcoin Retests Crucial Resistance at $70,000

Bitcoin-related stocks rallied in the pre-market session as Bitcoin (BTC) continued its rebound. MicroStrategy (MSTR) soared to $1,828, its highest point

MicroStrategy (NASDAQ:MSTR) soared in pre-market trading on Monday as Bitcoin continued its rally. The apex cryptocurrency briefly retested the crucial resistance at $70,000 on Monday.

MicroStrategy stock price now

MicroStrategy soared to $1,828 in pre-market trading, which is its highest point since March 28. The stock has outperformed Bitcoin and spot ETFs like IBIT, FBTC, and ARKT by a wide margin in 2024.

While Bitcoin is up by 57% this year, MicroStrategy stock is up by over 177%. Other companies in the crypto mining space like Riot Platforms (NASDAQ:RIOT), Marathon Digital (NASDAQ:MARA), and Core Scientific (NASDAQ:CORZ) also rose by over 5% in pre-market trading.

Coinbase, the biggest crypto exchange in the United States, also rose by 4% ahead of its upcoming earnings.

MicroStrategy stock benefits from strength in Bitcoin. The company is the largest BTC holder in the world with 226,331 coins.

Earlier this month, MicroStrategy added more coins to its holdings as part of a strategy to deploy a portion of the $700 million it raised in June.

At the Bitcoin Conference in Tennessee, Michael Saylor, the Chairman of MicroStrategy, stated that the coin is set to reach $13 million in a statement that also saw VanEck officials predict that the coin could hit $2.9 million by 2050.

Bitcoin has more upside now that its futures open interest jumped to a record high and after the price soared to the upper side of the falling broadening wedge chart pattern. This wedge is one of the most bullish patterns. The breakout also occurred as part of the three drives pattern that saw the coin move to its third phase.

MicroStrategy earnings and other updates

The next key news for MSTR stock is its earnings on August 1. Analysts now expect its revenue to cross the $120 million mark in Q2, up from $115 million in Q1.

This will also be higher than the $120 million it posted in the same quarter in 2023. But unlike other companies, MicroStrategy’s earnings largely do not impact its stock price because of its vast Bitcoin holdings.

Its stock declined by less than 5% on the day it announced its Q1 results and barely moved after its Q4 2023 earnings.

A key concern among investors is that MicroStrategy stock is now valued at over $31 billion against Bitcoin holdings that are valued at $15.8 billion. Its core solution also continues to struggle with annualised revenue declining from $499.3 million in 2022 to $496 million in 2023.

Another catalyst for MSTR shares will be its stock split that is scheduled for August 8. The 10-1 stock split will take its share price to about $175, making it more accessible to retail traders. In most cases, stocks tend to rally ahead of a stock split.

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