MicroStrategy (MSTR) opened about 15% up on Monday after President Donald Trump announced plans for a strategic Bitcoin (BTCUSD) reserve.
“I will make sure the U.S. is the crypto capital of the world,” Trump wrote on Truth Social, adding that other valuable cryptocurrencies like Ethereum (ETHUSD), Solana (SOLUSD), XRP (XRPUSD), and Cardano (ADAUSD) “will be at the heart of the reserve” as well.
MSTR shares are rallying in tandem with Bitcoin, which has soared more than 20% on the back of Trump’s announcement. Despite a sharp surge, however, there’s reason to believe that the Bitcoin-proxy is not out of room to run just yet.
Why Is MicroStrategy Stock Flying High on Monday?
MicroStrategy stock is soaring following the government’s announcement of a crypto reserve as it substantiates the company’s conviction in significant further upside in Bitcoin.
In fact, the world’s largest cryptocurrency by market cap will eventually be worth up to $5 million, according to its executive chairman Michael Saylor.
Saylor was the key figure behind MSTR’s strategy to invest aggressively in Bitcoin, and the Nasdaq-listed firm now owns close to 500,000 BTC coins.
Naturally, a meaningful increase in the price of BTC tends to reflect in MicroStrategy stock as well. That’s why MSTR shares opened in the green today.
Is It Too Late to Invest in MSTR Shares?
MicroStrategy stock’s correlation with the price of Bitcoin makes it worth owning at current levels.
According to Tom Lee, the head of research at Fundstrat, the world’s largest crypto will end this year at a valuation of more than $150,000, indicating potential upside of over 60% from here.
Speaking with CNBC this morning, he dubbed the recent pullback in BTC a “cyclical downturn,” adding the digital asset will come back with a vengeance since “it’s becoming more widely held.”
And as Bitcoin continues to hit new milestones, it’s conceivable that so will MicroStrategy stock in 2025.
What Wall Street Expects from Strategy in 2025
Other analysts seem to agree with Lee’s view on Bitcoin, given the consensus rating on MSTR shares currently sits at “Strong Buy.”
Wall Street sees upside in MicroStrategy stock to $540.36 on average, which indicates potential upside of nearly 105% on top of today’s surge.
