As a seasoned analyst with over two decades of market observation under my belt, I must admit that the current trajectory of MicroStrategy (MSTR) has piqued my interest significantly. Having witnessed the tumultuous crypto market collapse just two years ago and observing the subsequent resurgence, it’s fascinating to see a company like MSTR outperforming major US stocks such as Nvidia Corp.
It looks like MicroStrategy (MSTR) could soon hit a notable landmark – they are reportedly only two trading days away from keeping their price above $186.23 for twenty consecutive days within a thirty-day period, as per BitMEX Research.
In a recent tweet, BitMEX Research noted that MicroStrategy’s stock has stayed strong, closing at over $186.23 in 18 out of the last 28 business days. If this pattern persists for the next two days, MicroStrategy (MSTR) will have closed above this crucial level for 20 trading days within a span of 30 days.
It seems that it will take another 2 days before the stock MSTR closes at or above $186.23 for 20 out of the last 30 trading days.
— BitMEX Research (@BitMEXResearch) November 4, 2024
Over the past two years following the decline of the cryptocurrency markets, MicroStrategy has surpassed nearly all significant U.S. stocks, even industry leader Nvidia Corporation in terms of performance.
Over the last seven days, MicroStrategy stocks almost reached a record high of $258.24 as Bitcoin approached its historic peak of around $74,000 from March. This year, the shares have skyrocketed over 300%, outperforming Bitcoin’s approximately 70% increase. This impressive performance is largely due to Michael Saylor’s strategic investment approach that involves leveraging.
What this means
The progress of MicroStrategy has caught a lot of attention because it has taken an assertive approach towards buying Bitcoins, making the company one of the top corporate entities holding large amounts of this digital currency.
In a recent blog post, BitMEX research examined MicroStrategy’s outstanding bonds, taking a look at their structure and convertibility options. Thus, the anticipation surrounding MSTR’s potential milestone.
According to BitMEX’s explanation, MicroStrategy has the option, but not the requirement, to cash out bond holders starting from a particular date. They can do this only if the company’s stock price rises by more than 30% over any 20 days (either consecutive or not) within any rolling 30-day trading period compared to the conversion price.
For Mastercard (MSTR) zero-coupon bonds with the cash settlement date in February 2024, that date has already elapsed. The conversion price is $143.25, and a 30% premium to this amount equals approximately $186.23. If MSTR’s stock price remains above $186.23 for 20 consecutive trading days within the following 30-day period, this call option will become nearly active. Activating this option would benefit MSTR shareholders, but bondholders might be able to counteract this by converting their bonds.
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2024-11-04 19:52