MicroStrategy shares jump 10% as Bitcoin turns profitable

MicroStrategy shares rose 10% to $164 on Friday after Bitcoin climbed to about $77,200, returning the firm’s holdings to profitability following an announcement that the Strait of Hormuz would be open for commercial shipping during a 10-day ceasefire.

The Tysons Corner, Virginia-based company’s stock hit as high as $173 earlier in the session, the strongest level since mid-January, before settling near $164 by early afternoon. Bitcoin gained roughly 4.1% over 24 hours.

MicroStrategy holds about 781,000 Bitcoin purchased at an average price of $75,577. At recent prices that stake was valued at about $60.5 billion on paper.

Iran’s foreign minister, Seyed Abbas Araghchi, posted that the Strait of Hormuz was “completely open” to commercial vessels for the remainder of the ceasefire, a statement that traders viewed as lowering regional risk.

MicroStrategy co-founder and executive chairman Michael Saylor posted “Bitcoin and chill” on X alongside an image that appeared to be AI-generated.

Alex Rudolph, a market analyst at IG Group, cautioned the rally could be fragile and pointed to the stock’s sensitivity to changes in broader risk sentiment and to weaker price momentum in crypto markets.

Juan Leon, senior investment strategist at Bitwise, described MicroStrategy as “a gorilla that can move the market” and identified $76,000 as an important level for holders; he said maintaining trading above that level would be needed for the rally to have staying power.

Markets had been watching whether MicroStrategy might sell bitcoin after paper losses earlier this year. A prediction market priced the chance of the company selling bitcoin this year at roughly 13%, down from about 30% when its holdings first turned negative in February.

The company has added ongoing costs through a dividend-like instrument called STRC. Over the past six months MicroStrategy shares remain about 42% below roughly $279.

Investors continue to monitor bitcoin prices and regional developments to assess whether recent gains will hold.