Strategy ( (MSTR) ) has risen by 7.72%. Read on to learn why.
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Strategy, a company known for its significant investments in Bitcoin, saw its stock price rise by 7.72% over the past week. This surge comes after the U.S. Department of the Treasury and the IRS released new guidance allowing companies to exclude unrealized gains and losses on digital assets like Bitcoin from the corporate alternative minimum tax (AMT). This change means Strategy will not meet the threshold for the AMT, which was initially expected to impact the company starting in 2026 due to Bitcoin’s strong performance.
The company’s stock has also been buoyed by its strategic use of Bitcoin as a reserve asset. Strategy has adopted updated accounting rules that mark Bitcoin holdings to market, directly affecting reported earnings. For the first half of 2024, Strategy reported an $8.1 billion unrealized gain on its Bitcoin holdings, which are valued at approximately $74.6 billion as of June 30. Analysts on Wall Street have shown confidence in Strategy’s stock, with a Strong Buy consensus rating and a price target that suggests significant upside potential.
Despite some volatility in the cryptocurrency market, with Bitcoin experiencing fluctuations, Strategy’s CEO, Michael Saylor, remains optimistic. He believes that the structural buying pressure from corporate buyers and ETFs is too strong to ignore, suggesting that Bitcoin’s price will eventually rise. This optimism, coupled with the company’s strategic financial maneuvers, has contributed to the positive movement in Strategy’s stock price, making it an intriguing option for investors interested in the intersection of digital assets and traditional finance.