Strategy (MSTR) on Wednesday after President Donald Trump urged US banks to avoid the threat of the Genius Act and “make a good deal with the crypto industry.” The Trump-driven rally in MSTR is challenging its 50-day moving average (MA) today. A clear break above the $147 level is expected to accelerate the bullish momentum in the near term.
Despite recent gains, Strategy stock is about 20% off its year-to-date high.
Trump’s recent support for the Clarity Act, a companion bill to the Genius Act, reinforces his pledge to make the United States the “crypto capital of the world.”
The law aims to resolve a judicial tug-of-war between the SEC and the CFTC, providing the necessary legal certainty for large institutional flows into crypto assets. For Virginia-based Strategy (formerly known as MicroStrategy), that could prove transformative.
As the largest corporate holder of Bitcoin (BTCUSD), MSTR stock may benefit from a regulated environment that encourages banks to act as custodians and pension funds to finally enter the crypto space.
MSTR’s fundamental bull case is anchored by its aggressive Bitcoin yield strategy.
The company raised its total assets to 720,737 BTC, funded through sophisticated capital markets activities, including market equity sales and high-yield preferred stocks.
While the strategy’s shares currently trade at a compressed premium to its net asset value (NAV) over the past year, this valuation revision offers a more attractive entry point for long-term believers. In addition, major asset managers like Amundi have recently rallied over 370%, signaling the fundamental “smart money” is viewing MSTR’s technical breakout as an opportunity rather than a temporary blip.
The strategy has its Relative Strength Index (14-day) currently set at around 55, reinforcing that the bullish movement is not yet out of juice.
Investors can also take heart in the fact that Wall Street is bullish on its strategy for the next 12 months.
