MicroStrategy Eyes $10 Billion Inflows with Potential S&P 500 Inclusion: Will MSTR Reach $500?

Woo estimates 20-30% of the S&P 500’s $50 trillion market cap is passively tracked so if added to the S&P 500 they will get an influx of capital into MSTR. The addition process may start in 2025 when the new accounting standards from the Financial Accounting Standards Board (FASB) come into effect. These standards will allow MicroStrategy to meet the S&P 500 listing requirements pending S&P committee approval.

Speculative Inflows to Boost MSTR

According to Woo, speculative trading usually precedes index additions and will add $15-25 billion to MSTR’s market cap over the next few months. Woo posted this on social media, “It’s a combined total of $15-25b of total inflows over this period, not bad for a $60b company”. He expects speculative flows to start building up before the addition and will set the stage for big upside in MSTR’s stock.

And MicroStrategy just announced they will raise another $42 billion to buy more Bitcoin. This is in line with Michael Saylor’s plan to make MicroStrategy the largest Bitcoin bank which will increase demand for Bitcoin and potentially the price.

Analysts Predict MSTR to $500

Year to date MicroStrategy has returned 294% outperforming even the likes of NVIDIA and Bitcoin. MSTR closed at around $270 with analysts targeting $300 in the near term and $314 multi year. A successful breakout could get MSTR to $500 in the next year.

MSTR has a Bitcoin treasury of $20.54 billion which is 104% return on their Bitcoin investment. MSTR’s stock is closely tied to the price of Bitcoin. Their average cost basis for their 252,200 Bitcoins is $39,292 per BTC/.

Daily Technical Outlook: MicroStrategy Inc. (MSTR) – November 10, 2024

MicroStrategy’s price action is demonstrating bullish resilience, maintaining its position above the pivot level of $263. This level has become a critical support, strengthening the stock’s recent uptrend. Immediate resistance is encountered at $280.88, with further targets at $294.47 and $309.56 if upward momentum continues.

Conversely, a break below $263 could shift the outlook, with support at $247.32 and $243.29. The Relative Strength Index (RSI) is at 63.33, indicating moderate bullish momentum but falling short of overbought territory, allowing room for potential gains.

The 50-day Exponential Moving Average (EMA) at $243.29 reinforces the stock’s support structure, providing a foundation for further upward moves if buying interest persists.

MicroStrategy’s technical setup suggests a buy stance above $263 as the price consolidates within its bullish channel. Overall, the stock’s trajectory aligns with positive sentiment driven by strong technical indicators.