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Key Insights:
- MicroStrategy stock strongly holds a key support level at $423 after a recent price dip of over 7%, signaling potential bullish price action.
- Strategy’s new product, Stretch (STRC), its IPO to raise 500 million, is expected to boost Bitcoin accumulation.
- The RSI stands at 55, indicating that while the stock is nearing overbought territory, it still has room for upward momentum.
After a recent price dip of over 7%, the MicroStrategy stock (MSTR) is pausing at a key support level of $423 and appears to be forming a bullish price action. That’s because of Strategy’s new financial product, Stretch (STRC), which could enable the company to accumulate more Bitcoin (BTC).
MicroStrategy Stock Boosted by STRC IPO Plans
On July 21, 2025, the firm announced that it will launch an IPO of 5 million STRC shares, priced at $100 each, to raise $500 million. Additionally, unlike Strategy’s other products, this new firm will pay a dividend at a rate of 9% to STRC shareholders by the end of August 2025.
In the recent report, the firm noted, “Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin and for working capital.”
Bitcoin Accumulation Strengthens MicroStrategy Stock Outlook
Recently, a crypto expert shared a post on X (formerly Twitter) stating that MicroStrategy stock (MSTR) is the best-performing stock on the Nasdaq. The potential reason behind this is its strong belief in Bitcoin (BTC) and its continuous accumulation since 2020.
So far in 2025, Strategy has been aggressively accumulating Bitcoin. Moreover, with its recent purchase of 6,220 BTC for $739.80 million, the firm now holds 607,770 BTC worth $71.77 billion. Additionally, its unrealized profit has soared to $28.16 billion.
The company began buying Bitcoin in 2020 as an inflation hedge, and since then, its focus has been on acquiring and holding Bitcoin.
Looking at Strategy’s chairman and co-founder, Michael Saylor’s strong, bullish, Bitcoin-centric strategy, more than 100 publicly traded companies have adopted similar treasury models.
At press time, the MicroStrategy stock remained strong at $426 and has stayed stable over the past 24 hours. Data shows that MSTR has recorded a 0.028% increase in its trading volume. However, the asset has seen a 16% jump in its price over the past month.
With all this, MicroStrategy stock recently hit a record market cap and has surged by over 2,860% since 2020.
MicroStrategy Stock Price Prediction, Next Target $543?
Given the market sentiment at press time, an expert shared a post on X that MicroStrategy stock is currently showing strong upward momentum. It has recently taken key support from the 61.8% Fibonacci level at $425. He added, “The next target is $543 to challenge all-time highs.”
In addition to the expert’s bold prediction, technical analysis suggests that MicroStrategy stock appears to be bullish. That’s because it remains in an uptrend and is strongly benefiting from the recent Bitcoin rally.
Based on recent price action, if the asset holds the key support level of $425, there is a strong possibility that MSTR price could surge over 25%. It might reach the $538 level in the future.
At present, the asset’s Relative Strength Index (RSI) stood at 55. This indicator signaled that the stock price was nearing the overbought territory but still had enough room to continue its upward momentum.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
