One of the best-performing stocks on the Nasdaq this year — and one many investors don’t talk about much despite its rise — is MicroStrategy (NASDAQ:MSTR) stock. From the start of 2023 to its peak around mid-July, shares of MSTR tripled, providing credence to crypto enthusiasts who believe in the crypto-investing strategy of ex-CEO Michael Saylor.
That said, the bullish enthusiasm around MicroStrategy and the company’s Bitcoin (BTC-USD) holdings has hit pause today. MSTR stock is down more than 6% as of this writing as the price of BTC continues to trade below the key $30,000 level.
Of course, it’s worth noting that Bitcoin’s valuation has held up much better than the valuations of many other higher-risk assets, such as those found on the Nasdaq. Accordingly, there’s some intrigue around MicroStrategy and other Bitcoin-adjacent stocks as ways to play a potential resurgence in top-tier digital assets.
Let’s dive into whether MicroStrategy could be poised to surge higher, relative to other risk assets.
Could MSTR Stock Be Set to Surge Even Higher From Here?
From a base effect perspective, today’s 6% dip in MSTR stock could be a good thing. Indeed, lower prices today set the stock up for big gains on the horizon. And it’s clear that the investors that made bullish bets on MicroStrategy this year have been proven right. Accordingly, if momentum continues in the same direction, this stock could continue to see upside over the near term.
Of course, yesterday’s downgrade of the U.S. credit rating is a headwind for most risk assets. While Bitcoin prices have remained robust in light of these developments, it’s unclear whether this correlation will hold up. Other headwinds tied to regulatory, geopolitical and sector-specific concerns remain as well. Thus, it’s hard to place a bet on the direction of the move MicroStrategy is likely to see from here.
That said, one thing appears to be clear when it comes to assessing companies like MicroStrategy right now. Crypto-adjacent stocks have provided big-time volatility over the past few years and are likely to keep on doing so moving forward. For those willing to bet on brighter skies ahead, MSTR stock has proven to be a strong bet thus far. Of course, whether you are willing to risk that changing is up to each individual investor.
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.
