U.Today – MicroStrategy (MSTR) could be on the verge of hitting a significant milestone. According to BitMEX Research, MSTR is just two trading days away from maintaining its 20-day winning streak of closing above $186.23 in the 30-day window.
In a recent tweet, BitMEX Research highlights that MicroStrategy shares have been holding steady, maintaining a closing price above $186.23 for 18 of the last 28 trading days. If this trend continues over the next two days, MSTR will close above this critical threshold for 20 trading days within a 30-day period.
Since the collapse of cryptocurrency markets two years ago, MicroStrategy has outperformed almost all major U.S. stocks, including leader A.I. Nvidia company . (Nasdaq 🙂
Last week, MicroStrategy neared a more than two-decade high of $258.24 before hitting an all-time high of nearly $74,000 in March. The stock has surged more than 300% this year, beating out Bitcoin’s roughly 70% gain, thanks to executive chairman Michael Saylor’s leveraged investing strategy.
What does this mean
MicroStrategy’s trajectory has been closely watched due to its aggressive Bitcoin accumulation strategy, which positions the company as one of the largest corporate holders of the cryptocurrency.
In a recent blog post, BitMEX research examined MicroStrategy’s outstanding bonds, looking at their structure and conversion options. Hence the expectations for a potential MSTR milestone.
As BitMEX explained, on or after a specified date, MicroStrategy has the right, but not the obligation, to redeem the bonds and pay cash to holders. This right can only be exercised if the stock trades more than 30% above the conversion price for any 20 days (consecutive or otherwise) within any 30-day trading window.
For zero-coupon bonds, the February 2024 MSTR cash option has already expired. The conversion price is $143.25 and the 30% conversion bonus is $186.23. This option is close to going live as MSTR is expected to close above $186.23 for 20 days in the 30-day window. Exercise of this option would create value for MSTR shareholders, but bondholders can prevent this by exercising their conversion rights.
