Microstrategy rose 20% in the week after Trump’s victory, the price cut
The stock market is set to end the week with its best performance of the year on the back of Donald Trump's victory in the presidential race and another round of interest rate cuts, sending tech stocks like MicroStrategy ( MSRT ) to 52-week highs. High.
MSTR shares are trading at $271.26 on the Nasdaq as of press time, up nearly 20% over the past five days. The enterprise analytics and mobility software company has seen its stock rise 486% over the past 12 months, largely due to its Bitcoin (BTC) backup strategy.
MSTR Five-Day Performance. Source: Google Finance
Founded by bitcoin activist Michael Saylor, the company currently holds a portfolio of more than 250,000 bitcoins and is worth more than $19 billion at current prices. MicroStrategy recently announced plans to buy $42 billion worth of Bitcoin by 2027.
After Trump's election, the cryptocurrency's price jumped more than 10% and reached an all-time high, trading around $76,600 on November 8.
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Other Bitcoin-related stocks also had a strong week. The share of the Bitcoin mining company CleanSpark (CLSK) increased by 35% in a week, the crypto exchange Coinbase (COIN) – one of the biggest donors in the United States election – the stock rose by more than 48%.
Investor optimism is driven by Trump's re-election and expectations of a more accommodative economic climate by the Federal Reserve. In September 2024, the Fed cut interest rates by 0.5 percentage points, the first cut in four years. On November 7, another 0.25-point reduction will bring the federal funds rate to 4.5% – 4.75%.
The broader market rallied in response, with the S&P 500 gaining 5% for the week and the Dow Jones 4.8%, indicating growing confidence among investors.
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