MSTR Stock Price as Michael Saylor Hints at a Big Bitcoin Buy

Key Insights

• MSTR stock price jumped as Bitcoin continued its recovery.
• Michael Saylor hinted that the company continued buying.
• Strategy has formed a falling wedge pattern pointing to more gains.

The MSTR stock price has rebounded in the past few days, helped by the recent Bitcoin rebound. Strategy jumped to a high of $166 on Friday, its highest level since January 16. It has jumped by 57% from its lowest level this year.

Michael Saylor Hints at a Big Bitcoin Purchase

Strategy stock jumped last week as Bitcoin staged a strong comeback, hitting a high of $78,145. That’s its highest level since February 3rd, this year. At its peak, Bitcoin was up by over 30% from its lowest level this year. It’s a move that has benefited Strategy, its biggest holder.

In a statement on Sunday, Michael Saylor hinted that the company continued its Bitcoin accumulation last week. He urged his followers to think even bigger. He added the orange dot chart, which shows all the company’s purchases.

In the last update on Monday, Strategy said that it acquired 13,927 coins in the previous week for $1 billion. This purchase brought the total holdings to over 780k, making it the biggest Bitcoin holder in the world.

The rising Bitcoin price has boosted its value in the past few months. At the current price, these holdings are valued at over $59 billion. The same coins would be worth about $46 billion at its lowest level this year.

MSTR shareholders face ongoing dilution as the company issues millions of shares each week. It uses this strategy to continue its accumulation.

It is selling both the common shares and its preferred shares. That’s hurting investors, considering the company continues to have a negative net-asset value (NAV).

At the same time, the company continues to generate substantial unrealized losses. The company reported a $14.5 billion unrealized loss in the first quarter. This followed an additional $12.6 billion loss in the fourth quarter of last year.

Bitcoin Price at Risk as Iran Closes Strait of Hormuz

Bitcoin’s price could resume a downward trend if geopolitical tensions continue to rise. This risk adds pressure to MSTR’s stock outlook.

Iran announced on Saturday that it fired at ships attempting to cross the Strait of Hormuz. The Revolutionary Guard declared the Strait closed.

In a Truth Social post, Press Donald Trump said the closure was a violation to the terms of the agreement. He then said that his representatives would meet with the Iranians in Pakistan this week. Without a deal, he reiterated that the US would bomb all power plants and bridges in the country.

On the positive side, the ongoing escalation may be a negotiating tactic as the two sides near a deal. That explains why Bitcoin has slumped by just a few points since the Hormuz closure started. Bitcoin was trading at $75,965 on Sunday, down slightly from last week’s high of $78,145.

MSTR Stock Price Technical Analysis

The weekly chart shows that the MSTR stock price bottomed at $102.7 in February this year. Then, it rebounded to the current $166. This rebound happened as it formed a small double-bottom pattern and a neckline at $152.80.

The stock has remained between the 78.6% and 61.8% Fibonacci Retracement level. However, it has remained below all moving averages and the Supertrend indicator, a sign that bears remain in control.

The rebound happened after the stock formed a falling wedge pattern. That’s made up of two descending and converging trendlines.

At the same time, the Relative Strength Index (RSI) has moved from the oversold level of 25. Also, it has moved to the current 45.

Therefore, the stock will likely continue rising as bulls target the key resistance level at $200. The 61.8% Fibonacci Retracement level at $215 followed it.

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