MicroStrategy stock jumps as Norges Bank unveils major investment
MicroStrategy stock jumps
MicroStrategy’s stock is gaining momentum following a disclosure by Norway’s central bank, Norges Bank Investment Management, revealing a $514 million stake in the company.
This revelation has sparked fresh investor optimism, with analysts predicting a potential 50% surge in the stock’s price, pushing it past the $500 mark, according to Coingape.
Institutional Interest in Bitcoin-Backed Stocks Grows
Norges Bank’s investment in MicroStrategy underscores the increasing institutional appetite for Bitcoin-linked equities. The firm, led by co-founder and executive chairman Michael Saylor, has become one of the largest corporate holders of Bitcoin.
Its latest acquisition of 10,107 BTC for $1.1 billion has increased its total holdings to 471,107 BTC, cementing its status as a major player in the cryptocurrency space.
Beyond MicroStrategy, Norges Bank also holds $530 million in Coinbase shares and has a smaller investment in Metaplanet, a Japanese firm following a similar Bitcoin accumulation strategy. This broader exposure to crypto-related stocks highlights a shift in institutional positioning, with major financial entities betting on Bitcoin’s long-term growth.
Can MicroStrategy Hit $500?
MicroStrategy shares gained over 1% in pre-market trading, reaching $345 following the Norges Bank announcement. A recent report from Mizuho Securities, led by analyst Dan Dolev, set a price target of $515 for the stock, citing its correlation with Bitcoin’s performance. With BTC trading above $105,000 and analysts forecasting further gains, MicroStrategy’s stock is expected to follow suit.
As institutional investments in Bitcoin and related equities increase, MicroStrategy’s stock remains a key indicator of market sentiment, with investors closely watching its trajectory in the coming weeks.
Recently, MicroStrategy (MSTR) has entered the top 100 publicly traded U.S. companies, ranking 97th overall. This milestone follows a 12% surge in its stock price to $430 per share, driven by Bitcoin's all-time high.
