MicroStrategy’s stock price increased by 3% on Monday morning as Bitcoin tested the crucial resistance level at $70,000.

Bitcoin-related stocks saw a surge in the pre-market session as Bitcoin continued its rebound. MicroStrategy (MSTR) reached $1,828, its highest since March 28. The stock has outperformed Bitcoin and spot ETFs like IBIT, FBTC, and ARKB, rising by over 177% this year, while Bitcoin is up by 57%. Other companies like Riot Platforms, Marathon Digital, and Core Scientific also experienced gains of over 5% in the pre-market session. Coinbase, the largest crypto exchange in the US, rose by 4% ahead of its upcoming earnings report.

MicroStrategy’s stock benefits significantly when Bitcoin rallies. The company is the largest holder of Bitcoin globally, with 226,331 coins. Recently, the company added more coins using part of the $700 million it raised in June.

During a statement at the Bitcoin Conference in Tennessee, Michael Saylor, the company’s Chairman, predicted that Bitcoin could rise to $13 million, while VanEck forecasted a rise to $2.9 million by 2050.

“Bitcoin has more upside now that its futures open interest has jumped to a record high and after the price soared above the upper side of the falling broadening wedge chart pattern.”

The breakout happened after Bitcoin moved into the third phase of the three drives pattern, one of the most bullish patterns.

MicroStrategy Earnings Ahead

The next significant update for MSTR stock will be the upcoming earnings report on August 1. The average estimate is that its revenue rose to $121 million in the second quarter from $115 million in Q1. This would be higher than the $120 million reported in the same quarter in 2023.

MicroStrategy’s earnings don’t significantly impact the stock due to its substantial Bitcoin holdings. The stock dropped by less than 5% when it published its first-quarter results and barely moved after its Q4 2023 earnings.

A key concern among investors is the stock’s overvaluation, with a market cap of over $31 billion against Bitcoin holdings worth $15.8 billion. Additionally, its core business solution has not been performing well, with annual revenue decreasing from $499.3 million in 2022 to $496 million in 2023.

Another catalyst for MSTR shares is its scheduled stock split on August 8. The 10-1 stock split will bring its stock price to around $175, making it more accessible to retail traders. Typically, shares experience a rise ahead of a stock split.

Stay updated with the latest developments in the cryptocurrency market on Global Crypto News.

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