MicroStrategy (MSTR) shares could remain in focus on Tuesday after soaring to a new record high following news the software analytics company had purchased an additional $4.6 billion of Bitcoin (BTC).
The company bought 51,780 bitcoins for approximately $4.6 billion in cash, at an average price of approximately $88,627 per bitcoin, taking its total stash in the pioneer cryptocurrency to 331,200 BTC, according to a U.S. Securities and Exchange Commission (SEC) filing.
MicroStrategy, whose BTC holdings tally roughly $30 billion at current prices, started acquiring Bitcoin in August 2020 to hedge against inflation and diversify its corporate treasury. MicroStrategy shares have surged nearly sixfold since the start of the year through Monday’s close, significantly outpacing Bitcoin’s year to date (YTD) return of around 115%.
The company’s stock gained 13% Monday, closing at $384.79.
Below, we break down the technicals on MicroStrategy’s weekly chartand point out key price levels to watch out …