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With Bitcoin Above $28K MSTR Stock Head Towards $300 Mark

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  • MicroStrategy holds a $205 Million loan from Silvergate Bank.
  • MSTR stock was trading at a market value of $263.96.

While the crypto market finally beholds the rising sun on the equator, companies in the sector are still under the shadow of disastrous economic events. With the recent collapse of renowned global banks, the associated organizations seek cover from the financial debris. MicroStrategy (NASDAQ: MSTR), a business intelligence company, is among the organizations that appear stoic in the current scenario.

MicroStrategy Still Has a Firm Belief in Bitcoin

The Bitcoin (BTC) friendly company saw its shares plunge yesterday. MSTR stock was down by 1.38% since its previous close. According to its latest earnings report, the organization suffered a $250 Million loss. Their EPS fell immensely short, missing the estimate by $21.95. The company still believes in the flagship crypto asset and will keep buying the coin.

The company reportedly took a $205 Million loan from now-insolvent Silvergate Bank, a crypto-friendly institution However, this does not seem to affect the company. MicroStrategy said they do not hold any assets in custody with the bank. The cratering caused several digital asset companies to lose ties with them.

Michael Saylor, MicroStrategy CEO, believes highly in Bitcoin. The company raised its holdings by 2,500 BTC to 132,500, according to their December 2022 filings. It booked a $197.5 Million impairment charge from the BTC holdings. The shrinking resulted from crypto winter leading to extreme fluctuations in crypto assets.

November 2022 saw Bitcoin falling to around $15,500. It remained under consolidation till December, with the price peaking at around $17,000. FTX cratering pushed crypto winter to spread the contagion. However, the new year brought warmth to the market and started a rally. BTC was changing hands at $28,051 at the publication time.

MSTR Stock Price Analysis

The chart shows MSTR stock is rebounding toward the August 2022 position. The price has remained volatile since a major bear run started in April 2022, lasting till mid-July. The shares lost almost 70% value during the period. Pitchfan shows the value has broken a resistance recently, and the stock may be headed to $290-$300 levels.

Fib retracement points the price racing to $291, which may retrace in the coming days. Even if a breakout occurs, MSTR shares need to go the extra mile to reach its next resistance. Furthermore, the rate of change indicator highlights more buyers may appear before the price enters an overbought zone. Average true range is rising, a sign of increasing volatility in the stock.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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