MicroStrategy Stock Jumps 9% Following Bitcoin Investment; Red Flags Ahead?

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The stock price of MicroStrategy (NASDAQ: MSTR) surged by a little over 9 percent following its acquisition of hundreds of millions of dollars worth of Bitcoin on Tuesday. The public-traded firm closed the New York session higher at 155.75, up by 9.21 percent. Its gains came as a part of an all-round bullish session for the Nasdaq Composite. The tech-savvy index added 133.67 points, or 1.21 percent, to close the session at 11,190.32. MSTR logs a better-than-average rally on Tuesday after buying $175m worth of Bitcoin. Source: TradingView.com MicroStrategy increased its exposure in Bitcoin, an unconventional financial asset that aims to play hedge in times of global economic crisis. The firm’s co-founder, Michael Saylor, confirmed the purchase of $175 million worth of BTC units for their capital reserves. That marked Microstrategy’s second-largest investment into the cryptocurrency since August 2020. Back then, the firm had reallocated $250 million worth of cash…

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