MicroStrategy Erases 2-Month Loss as Crypto Stocks Rally: Is the Damage Over?
Strategy, the company once called MicroStrategy (MSTR), rose 6.9% to $111.14 on Thursday afternoon. That is its best price since June 18, which wipes out a two-month slide.
The stock market has forgiven the company. The balance sheet has not. MicroStrategy's Bitcoin is still worth billions less than it paid.
How MicroStrategy Clawed Back Two Months
MSTR traded at $111.45 as of 3.05 p.m. ET, up 6.91% from Wednesday's $104.25 close. The shares had bottomed at $81.81 in late June.
That is a 35.9% climb off the floor. July never produced a close above $101.95, so Thursday's move clears the whole summer.
The fuel came from Bitcoin topping $70,000, marking the first time in 78 days. The token had not held that level since early June.
Two decisions in Washington did the heavy lifting. On Wednesday the Treasury doubled the size of its long-end bond buybacks. Each operation will now buy at least $4 billion from Sept. 9.
A day earlier, the Securities and Exchange Commission (SEC) proposed Regulation Crypto Assets. The rule would let crypto firms raise up to $75 million a year without full registration.
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