Last Wednesday, trading volume in MicroStrategy shares exceeded that of Nvidia and Tesla. The company, which actively invests in bitcoins, has risen in price by 500% since the beginning of the year, and has surpassed even Nvidia in terms of growth over seven years. Even the bet of a major player against MicroStrategy did not disrupt the positive trend.
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According to the results of trading on the US stock market last Wednesday, November 20, the trading volume of MicroStrategy shares reached $18.56 billion – this is more than the $17.32 billion shown by Nvidia, and $11.91 billion by Tesla. The next day, short-seller Citron Research announced it had bet against MicroStrategy, whose shares fell more than 16% that day. But even taking into account this decline, the company has increased in price by 50% since the election of Donald Trump to the presidency of the United States this month – as a reserve asset it chose Bitcoin, which over the same period rose by 30% and on Thursday reached $98,000 mark.
Since the beginning of the year, MicroStrategy has risen in price by 500%, and over seven years the profitability of its securities was 3420% – according to this indicator, it also surpassed Nvidia, whose profitability was “only” 2660%. By the way, Nvidia shares have risen in price by only 190% since the beginning of this year.
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This week, MicroStrategy said it had purchased another 51,780 bitcoins, worth about $4.6 billion, at an average price of just over $88,500 per unit. In total, the company bought 331,200 coins of the largest cryptocurrency, spending an average of $49,874 per bitcoin. The phenomenal growth of the company’s shares attracted the attention of investors, who considered the latest acquisition a dubious enterprise. Citron Research said it remains bullish on Bitcoin and had previously been positive about MicroStrategy’s play on the cryptocurrency, but that the company’s stock movement is now “completely disconnected from Bitcoin’s fundamentals.”
After Trump’s victory, other players in the cryptocurrency industry also showed positive stock dynamics, including Coinbase and Robinhood. The elected president promised a favorable attitude of the country’s authorities towards the industry, up to the creation of a “national strategic reserve of bitcoins.”