MicroStrategy Incorporated Inc. shares hit new 52-week highs in early trading Monday before pulling back. Here’s what you need to know.

What To Know: MicroStrategy ( MSTR ) shares reached a 52-week high on Monday, fueled by a surge in Bitcoin prices, but pulled back in the afternoon session. Despite this move lower, the stock remains up about 220% year-to-date (YTD).

The company has long been considered a proxy for Bitcoin due to its significant Bitcoin holdings, which continue to anchor its stock performance. The company is the largest publicly traded holder of Bitcoin, with 252,220BTC as September 20 2024.

What’s Going On: Bitcoin’s price rose more than 4% in the last 24 hours, driving strength across the crypto market and related stocks like MicroStrategy ( MSTR ). Bitcoin is now up nearly 10% over the past month and remains about 12% below its all-time highs.

This crypto rally follows ETF inflows, with approximately $419 million pouring into Bitcoin ETFs last week. Meanwhile, short-Bitcoin products saw outflows of $6.3 million. Political factors may also be in play, as Republican candidates, often seen as more crypto-friendly, gained ground in recent polling.

Analyst Reaction: Additionally, analysts have pointed out that Bitcoin's technical setup could lead to a breakout. Crypto analyst Michaël van de Poppe recently noted that if Bitcoin can break above $64,000, it could trigger a major upward move. Barclays recently raised its price target for MicroStrategy ( MSTR ) from $173 to $225, joining a list of other firms that have lifted targets for the stock in recent weeks.

What Else: MicroStrategy ( MSTR ) has also garnered attention on social media platforms like StockTwits and WallStreetBets. The stock was featured on Benzinga’s "Stock Whisper Index" last week.

MSTR Price Action: MicroStrategy ( MSTR ) shares were down by 4.49% at $203.04 at the time of writing, according to Benzinga Pro.

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