Shares of MicroStrategy Inc. MSTR, +14.75% shot up 7.8% in morning trading Tuesday, putting it on track for a fourth straight gain, boosted by the 5.1% jump in bitcoin BTCUSD, +5.29% toward a record close. The stock has jumped 18.0% amid the four-day win streak. The enterprise software company has been seen by investors as a bitcoin play, as the company said it uses the cryptocurrency as its primary treasury reserve asset, and has spent $2.23 billion to accumulate 91,579 bitcoins through April 5, at a average purchase price of $24,311 per bitcoin. On Monday, MicroStrategy disclosed that non-employee members of its board of directors will be paid their fees in bitcoin instead of cash. MicroStrategy’s stock has soared 534.3% over the past 12 months, while bitcoin has run up 817.5% and the S&P 500 SPX, +0.15% has gained 49.6%. The correlation coefficient between MicroStrategy’s stock and bitcoin is 0.94 over the past year, but that has dropped to just 0.32 since the end of February, according to a MarketWatch analysis of FactSet data. Since reaching a 21-year closing high of $1,272.94 on Feb. 9, MicroStrategy’s stock has tumbled 39.2% while bitcoin has hiked up 35.2%.
View Article Origin Here
