MSTR Soars Past $400 Again as Crypto-Linked Stocks Lead Market Revival

MicroStrategy's stock breaches $400—proving once again that betting on Bitcoin is Wall Street's favorite rollercoaster.

The Bitcoin Proxy Play

MSTR’s rebound mirrors crypto’s resurgence, with traders piling back into high-beta assets. Because nothing says 'risk-on' like a company that turned its balance sheet into a BTC call option.

Market Whiplash

After months of sideways action, the stock’s rally suggests institutional FOMO isn’t dead—just hibernating between Fed meetings. Analysts whisper 'macro turnaround,' while quietly eyeing the 10-year Treasury yield.

The Cynic’s Corner

Let’s be real: if MSTR drops below $400 tomorrow, half of crypto Twitter will blame 'market manipulation' rather than admit they bought the top. Again.

MSTR (Microstrategy) stock has recorded marginal declines today, but maintained the $400 price tag in the early trading session.

Despite the slight pullback, its recent performance curtailed the sharp price correction in the last 2 weeks of July, allowing it to add over 9% over the last five days.

But will this newfound momentum be short-lived, or will it be a ticket to new highs?

The MSTR stock price recovery meant that it was on track to conclude the first week of July in the green. A clear sign that the bearish retracement in the second half of July was over.

That MSTR stock correction was a 20% drawdown from its July local top to its recent local low on August 1. The highest market correction observed in over 3 months.

Although the bearish phase aligned with the overall market direction, MSTR stock price action showed signs of a bull trap.

Bitcoin price broke above its 6-month, slightly descending trend line. Many saw this as a breakout, and this may have triggered a surge in Leveraged longs near this zone.

Actual liquidation figures were hard to come by, but a liquidation metric on TradingView stated that liquidations peaked at $145 billion on 15 July. A figure whose accuracy was still in question.

What Strategy’s Latest Guidance Says About MSTR Stock Issuance?

Although the market was still in recovery, MSTR (microstrategy) stock price appeared to be heavily influenced by Bitcoin performance.

This is not surprising considering its heavy exposure to the flagship crypto. This may also hint at BTC’s next move.

The correlation between the two assets means that MSTR stock price performance in the coming days will be heavily influenced by Bitcoin price action. 

In other words, MSTR price will dip if bitcoin capitulates to the downside, and it will rally if BTC maintains an upward trajectory.

However, despite this correlation and price movements, Strategy, previously known as MicroStrategy, recently released a guideline on how it has been pricing its stock issuance. This has gained notable traction from market participants.

Meanwhile, the guidance revealed how Strategy has been executing its stock issuance based on multiple net asset value (mNAV).

Based on the different tiers, it was clear that the mNAV had a big impact on how the company acquires more Bitcoin.

Dividends are only issued when MSTR is above 2.5X. The only time it will be issued below 2.5X will be on interest payments and dividends.

Michael Saylor Discloses Strategy’s Smart Plays

Speaking during a recent CNBC interview, Michael Saylor revealed how his company has been profiting from Bitcoin. Saylor disclosed that the company has been increasing its Bitcoin position using funds generated from volatile market swings.

The Strategy chairman also revealed that the company has risk spread out across low-risk investments such as bonds. Funds are also rotated into stocks.

Strategy has been sitting on gains achieved from its long-term Bitcoin exposure. These are just some of the oversimplifications of the company’s strategy.

Nevertheless, the strategy that the company has been using has largely leveraged Bitcoin as an asset to drive investment growth under different market conditions.

It also indicates that the MSTR stock price has the potential to grow at a faster rate than Bitcoin. This WOULD explain its appeal, while the mNAV approach encouraged more buying on the run-up.

Saylor’s strategy disclosure for his company also answered some of the questions that investors had over how the company has been handling risk.

Strategy previously received criticism over what many termed as an investment strategy that was too risky.

Would the same strategy still make sense if Bitcoin were to suffer a major unexpected outcome that lasts for, say, an entire crypto winter? Such an outcome already played out in the past.

For example, Strategy was still accumulating Bitcoin during the 2022/2023 crypto winter, during which the price dropped as low as $17,000.

Chances are that another major crash would just present Strategy with another accumulation event.