MicroStrategy ($MSTR) shares saw a significant increase on Friday, rising over 25% to nearly $133, driven by a recovery in Bitcoin prices. This gain came after a sharp decline in the stock following heavy losses the previous day. As the market stabilized and Bitcoin rebounded from several weeks of lows, demand emerged for digital asset-linked stocks. Bitcoin’s price approached $71,000, benefiting associated financial instruments.
On Thursday, MicroStrategy shares had dropped sharply after the company reported multibillion-dollar losses amid heightened crypto market pressures. As the largest corporate holder of Bitcoin, MicroStrategy’s stock price is closely tied to Bitcoin’s value. The company disclosed a substantial $12.4 billion loss in Q4, primarily due to unrealized declines in its extensive Bitcoin holdings, which exceeded market expectations and contributed to the stock’s fall.
However, CEO Michael Saylor announced the launch of a Bitcoin security program aimed at collaborating with global cyber and crypto communities to address potential quantum computing threats. The company described this concern as a new type of “feud” related to Bitcoin and is actively working on quantum-resistant security measures and protocol updates worldwide.
Senior executives emphasized a long-term strategy, stating that despite the steep Bitcoin price drop, the company does not face immediate financial difficulties. CEO Phong Le noted that only if Bitcoin’s price remained around $8,000 for five to six years would the company encounter challenges in debt repayment.
Currently, Bitcoin trades near $70,040, slightly below its seven-day high of $71,258 and well above its recent low of approximately $60,256. Market activity continues with investors focusing on long-term prospects.
Source: bitcoinmagazine
