The stock market is showing one of its best performances of the year following Donald Trump's victory in the elections and rate cuts. Tech stocks, including MicroStrategy, have soared to new highs.
MicroStrategy's Stock Surge
MicroStrategy shares, trading on the Nasdaq, have reached $271.26, nearly 20% up over the past five days. Over the past 12 months, the company's shares have skyrocketed by 486%, mainly due to its Bitcoin reserve strategy.
Bitcoin's Influence and MicroStrategy's Plans
The company, founded by Bitcoin advocate Michael Saylor, currently holds a portfolio of over 250,000 Bitcoin, valued at more than $19 billion at current prices. MicroStrategy recently unveiled plans to purchase $42 billion worth of Bitcoin by 2027. Bitcoin's price hit an all-time high after the election, jumping over 10% and trading around $76,600.
Other Companies' Response and Overall Market
Other Bitcoin-related stocks also had a strong week. Shares of Bitcoin mining company CleanSpark rose 35%, and crypto exchange Coinbase, one of the biggest donors in the US election, saw its stock soar by more than 48%. Investor optimism is driven by expectations of a more favorable economic environment under Trump's reelection and further easing by the Federal Reserve.
The broader market has rallied, with the S&P 500 up 5% and the Dow Jones gaining 4.8%, indicating growing confidence among investors.
