MicroStrategy (MSTR), the business intelligence firm that has embraced Bitcoin as its primary reserve asset, saw its stock surge on Friday as the company's massive cryptocurrency holdings received a significant boost from Bitcoin's record-breaking rally.
Bitcoin, the world's largest cryptocurrency, shattered previous records by surpassing $82,000 over the weekend, fueled by optimism surrounding a potentially more crypto-friendly regulatory environment under the incoming Trump administration and Republican-controlled Congress. President-elect Trump had campaigned on a pro-crypto platform, vowing to make the U.S. "the crypto capital of the world," while Republican Senator Tim Scott, the likely next chair of the Senate Banking Committee, has pledged to introduce a new regulatory framework to ease restrictions on crypto trading and custody.
MicroStrategy, under the leadership of CEO Michael Saylor, has been aggressively accumulating Bitcoin as its primary reserve asset. The company announced on Friday that it had acquired an additional 27,200 Bitcoin between October 31 and November 10 at an average price of $74,463 per coin, bringing its total holdings to 279,420 Bitcoin worth over $20 billion at current prices.
The surge in Bitcoin prices has resulted in MicroStrategy's Bitcoin holdings gaining over $10 billion in unrealized profits, significantly boosting the company's stock price as investors recognize its strategic pivot towards becoming a "Bitcoin Treasury company." MicroStrategy's shares soared over 13% on Friday, capitalizing on the crypto market euphoria.
The crypto rally has not been limited to MicroStrategy, as other companies with exposure to the digital asset market have also seen their stocks soar. Coinbase Global (COIN), the leading cryptocurrency exchange, and crypto mining firms like Riot Platforms (RIOT) and Marathon Digital (MARA) have all experienced substantial gains in their share prices, riding the wave of enthusiasm following Trump's election victory.
