MicroStrategy (NASDAQ:MSTR) is among the top companies investors look to for crypto exposure. Largely viewed as a Bitcoin (BTC-USD) holding company, MicroStrategy has seen extremely volatile price action this year. Thus, in many regards, today’s surge of more than 16% in MSTR stock may not turn as many heads as one may think.
The thing is, there’s a big reason why MicroStrategy and so many other crypto-related stocks are surging today. On the heels of a high-profile assassination attempt at a recent rally, Donald Trump will reportedly be making a speech on July 27 at a key Bitcoin conference in Nashville. This event will certainly be closely watched for any commentary on how the former president views crypto and his stance should he be elected. Notably, the Republican National Convention (RNC) has, for the first time, included Bitcoin on its 2024 platform.
Let’s dive into what to make of this news, and why MSTR stock is having the day it is today.
MSTR Stock Surges Ahead of Key Trump Speech
It’s widely known that of the two potential candidates on the ticket in November, Donald Trump has taken a much more accommodative approach to crypto than President Joe Biden. Trump’s campaign has been reportedly accepting certain tokens for donations and promising a more friendly regulatory landscape for digital assets.
Thus, it’s very likely that any sort of specific policy commentary from Trump at the upcoming Bitcoin conference should be extremely enticing for investors. Today’s 4% move higher in Bitcoin (and 10% this week) indicates investors are jumping aboard the Trump train.
There are plenty of uncertainties when it comes to this upcoming election. But given how polls and investor sentiment have clearly shifted in recent days, the crypto sector certainly has plenty to cheer. If Bitcoin continues its impressive rise, MicroStrategy could have much more to gain than many of its peers due to the fact that the majority of the company’s revenue and valuation is tied to its Bitcoin holdings, with the liabilities on its balance sheet denominated in dollars.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
