NVDA
NVIDIA
114.060 TSLA
Tesla
284.650 PLTR
Palantir
83.420 MSTR
Strategy
250.920 TSM
Taiwan Semiconductor
172.970 MicroStrategy Joins Nvidia, Tesla in Most Active Options as Bitcoin Climbs Above $105K
$Strategy (MSTR.US)$ options volume jumped Friday as $Bitcoin (BTC.CC)$ climbed as much as $105,000 to a fresh one-month high ahead of Donald Trump's inauguration as the 47th U.S. president that is seen to usher in a crypto-friendly era.
Bitcoin advanced as much as 4.9% to $105,047.93 after Bloomberg reported that Trump plans to release an executive order designating crypto as a policy priority and create an advisory council that would advocate for the industry. Stocks tied to the world's largest crypto currency also rallied, with MicroStrategy jumping as much as 7.7% to $395.18, bolstering the appeal of call options that give the holders the buy the shares at a specified price.
As of 12:58p.m. in New York, 715,200 call and put options were traded, making MicroStrategy the fourth most active stock option behind $NVIDIA (NVDA.US)$, $Tesla (TSLA.US)$ and $Apple (AAPL.US)$. The total volume of MicroStrategy options rose from 476,942 yesterday and exceeded the 20-day average of 574,126, according to data compiled by Bloomberg.
The rally in bitcoin comes just days before MicroStrategy is set to bring to a shareholder vote its plan to increase the number of its authorized shares of common stock to 10.3 billion, from the current 330 million. Shareholders will be asked to approve the plan during the company's special stockholders meeting on Jan. 21, a day after Trump's inauguration.
While increasing the number of authorized shares of a typical company tends to get a negative market reaction as it could dilute the holders' stake, MicroStrategy is far from typical. The software company whose business strategy includes buying Bitcoin has seen its share price outpaced the gains in the cryptocurrency as it sold new shares and debt to finance its buying spree.
In October, the company that has missed earnings estimates amid declining gross margins, announced a three-year plan to raise as much as $42 billion in equity and fixed income instruments including convertible notes and preferred stock to bolster its arsenal for its bitcoin buying spree.
As of Jan. 12, the company and its subsidiaries held a total of 450,000 bitcoins, which were acquired at an average purchase price of about $62,691 per bitcoin, including fees and expenses, according to its filing with the Securities and Exchange Commission on Jan. 13. MicroStrategy shares have climbed 2,683% since the end of 2022, compared with a 529% rally in Bitcoin.
Share your thoughts on MicroStrategy and Bitcoin in the comments section below. Do you see MicroStrategy sustaining its rally? Let your voice be hard by voting below.
Can MicroStrategy sustain its rally?
Yes, the rally can keep going
No, the best is behind it
82%
18%
215
votes
·
Vote has ended
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
7315
Followers
18
Following
19K
Visitors
Follow
Buy n Die Together❤ :
Sock Turf : Misinformation all over the place. The company is not increasing its number of shares. The company is increasing the number of authorized shares. These articles are so misleading