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After Trump's victory and interest rate cuts, MicroStrategy shares soared.

After Trump's victory and interest rate cuts, MicroStrategy shares soared.

09.11.2024 19:20

Trump's election victory and the subsequent interest rate cuts have boosted MicroStrategy's shares by 20% in the past week. The company manages a portfolio of over 250,000 Bitcoins and plans to purchase $42 billion worth of Bitcoin by 2027. These strategic moves have created significant optimism among investors and led to a rise in the markets.

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Donald Trump's victory in the presidential elections and the Fed's consecutive interest rate cuts are creating a significant jump in MicroStrategy's shares. The company has attracted attention with its Bitcoin investments, and its shares have increased by 20% in the last week.

Giant Bitcoin Investor MicroStrategy Gained 20% in Value in One Week

MicroStrategy has shown a strong rise in the stock market due to recent political and economic developments. The company's shares gained 20% in value in one week following Donald Trump's success in the presidential race and the consecutive interest rate cuts by the U.S. Federal Reserve (Fed). The company's shares, trading at $271.26 on Nasdaq, have shown an impressive performance of 486% over the past 12 months.

MicroStrategy, which stands out with its Bitcoin investment strategy led by Michael Saylor, draws attention with its massive portfolio of 250,000 Bitcoins. In addition to this $19 billion investment, the company plans to increase its Bitcoin assets to $42 billion by 2027.

Recent developments in the cryptocurrency market are also supporting the company's rise. Bitcoin breaking a new record at $76,600 and gaining over 10% in value after Trump's victory has positively affected other companies in the sector as well. CleanSpark, which operates in Bitcoin mining, increased by 35%, while the cryptocurrency exchange Coinbase recorded a rise of 48%.

The positive atmosphere following the U.S. elections has been further strengthened by the Fed's interest rate cut decisions. The central bank lowered the fund rate to a range of 4.5% - 4.75% with cuts of 0.5 points in September 2024 and 0.25 points on November 7.

This optimistic picture in the markets has also reflected on the main indices. The S&P 500 index closed the week with a 5% increase, while the Dow Jones Industrial Average rose by 4.8%, indicating an increase in investor confidence.



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