MSTR Stock Surges as Strategy Sees $8.59B in Unrealized Profit
Strategy (NASDAQ: MSTR) stock has reached its highest closing price since May 15, ending at $168 on September 21. The gains are largely attributed to a broader crypto market recovery, with Bitcoin (BTC) briefly touching $87,000 before dropping to $85,000.
The company's mNAV reading has risen to 1.17x, its highest level since June 22. This means that investors are paying $1.17 for every $1 of BTC held by Strategy.
Analyst Donald Dean believes MSTR stock could rally to $225 if it can move above the resistance at the 23.6% Fib of $170. Strategy has reached an unrealized profit of $8.59 billion on its 846,000 BTC holdings, which are 13% above their average cost basis of $75,416.
The company's profits could continue to balloon if Bitcoin price maintains its uptrend due to easing geopolitical tensions. However, if MSTR fails to close above the 200-week EMA resistance at $167, it might drop to retest the support at the 20-week EMA of $130.