MicroStrategy Shares Surge 20% in the Week After Trump’s Win and Interest Rate Cuts

The stock market is set to wrap up one of its best-performing weeks of the year, following Donald Trump’s victory in the presidential election and another wave of interest rate cuts. This market rally has driven tech stocks, including MicroStrategy (MSRT), to impressive highs.

MicroStrategy shares are trading at $271.26 on the Nasdaq as of this writing, marking a near 20% gain over the past week. The enterprise software and analytics firm has seen its stock skyrocket by 486% in the past year, largely fueled by its strategic investments in Bitcoin.

Founded by Bitcoin proponent Michael Saylor, MicroStrategy currently holds a massive portfolio of over 250,000 Bitcoin, valued at over $19 billion at present market prices. The company recently unveiled plans to add up to $42 billion more in Bitcoin to its holdings by 2027.

Bitcoin prices reached a new peak following Trump’s election, climbing over 10% and trading around $76,600 as of November 8.

Other cryptocurrency-related stocks have also surged. Bitcoin mining company CleanSpark (CLSK) saw its shares rise by 35% this week, while Coinbase (COIN), a major player in the crypto exchange market and one of the largest donors in the recent election, experienced a 48% jump in stock value.

Investor enthusiasm appears to be driven by hopes of a more favorable economic outlook with Trump’s reelection and additional interest rate cuts by the Federal Reserve. In September 2024, the Fed reduced rates by 0.5%, marking its first cut in over four years. Another cut of 0.25% followed on November 7, setting the federal funds rate to a range of 4.5%–4.75%.

The broader market is also riding this wave of optimism, with the S&P 500 climbing 5% this week and the Dow Jones rising 4.8%, signaling growing confidence among investors.

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