Recently, MSTR (MicroStrategy Inc - Class A) has seen a surge in attention across the crypto market, with its stock price rebounding more than 60% since its February low. According to Gate TradFi data, as of April 20, MSTR was trading at $166.3, marking a 12% gain in the past 24 hours. What’s behind MSTR’s strong performance? And how can you efficiently take advantage of MSTR’s bullish momentum on the Gate platform?
The Triple Drivers Behind MSTR’s Remarkable Comeback
Driver 1: Bitcoin Price Recovery Returns MSTR’s Holdings to Profit
As the world’s largest public company holder of Bitcoin, MSTR’s stock price is closely tied to Bitcoin’s performance. As of April 20, Bitcoin was trading around $74,300, having recovered significantly from its February lows. The company currently holds 780,897 Bitcoins, with an average acquisition cost of approximately $75,577 per Bitcoin.
Driver 2: 5x Leverage Effect Amplifies Gains
MSTR essentially acts as a "leveraged Bitcoin" asset. Recent data shows that MSTR’s weekly gain (29.5%) far outpaced Bitcoin’s (5.7%) over the same period, with an implied beta of nearly 5.2x. This means that for every 1% rise in Bitcoin, MSTR typically climbs about 5%. However, this leverage cuts both ways—when Bitcoin dropped 36% earlier this year, MSTR fell by 44%.
Driver 3: Ongoing Accumulation Expectations and Institutional Optimism
Company executives have recently hinted at "thinking bigger" on social media, and with approximately $2.25 billion in cash reserves and a net leverage ratio of just 10%, the market widely expects further Bitcoin accumulation. On the institutional side, Barchart data shows analysts maintain a "Strong Buy" consensus on MSTR, with an average price target of $359—more than double the current price.
How to Go Long on MSTR at Gate TradFi: A Complete Guide to MSTRX Contracts
Gate has launched MSTRX perpetual contracts (tokenized MSTR contract products), allowing users to go long or short using USDT, with up to 10x leverage and 24/7 trading. Here’s how to get started:
Step 1: Log in to Gate and Enter the xStocks Section
After logging into your Gate account, select the "xStocks" section from the top navigation bar. Here, you’ll find all supported tokenized stock assets, including MSTRX (MicroStrategy tokenized stock contract), which is the trading instrument.
Step 2: Choose Your Trading Pair and Leverage
In the xStocks section, switch to the "Contracts" tab, select the MSTRX/USDT trading pair, and choose your leverage from 1x up to 10x, based on your risk tolerance. Contracts are settled in USDT, with profits and losses calculated in USDT, and you can close positions at any time.
Step 3: Open a Long Position
If you expect MSTR’s price to continue rising, select the "Long" direction, enter your position size, and set your margin ratio. It’s recommended to set a stop-loss price to manage downside risk.
Key Advantages of Going Long on MSTR
24/7 Trading: Unlike traditional U.S. stock markets, which only operate during specific weekday hours, Gate’s MSTRX contracts are available 24/7, allowing you to respond to market moves at any time.
Leverage-Enhanced Returns: MSTR is already a leveraged play on Bitcoin. By adding contract leverage, you can further amplify potential upside.
Low Entry Barrier: Fractional trading is supported, starting from as little as 0.0001 units—no need to buy whole shares.
Risk Warnings and Position Management Tips
While going long on MSTR offers attractive upside, the risks are equally significant. First, MSTR’s 5x leverage to Bitcoin is double-edged—any Bitcoin correction will magnify MSTR’s losses. Additionally, using leverage in contract trading further increases potential losses, and sharp market swings could wipe out your margin. The company’s ongoing financing through convertible bonds and preferred stock to purchase Bitcoin may also create dilution pressure for existing shareholders.
Position Advice: If you’re bullish on Bitcoin’s medium-term trend and want to amplify returns, consider building long positions in batches with 1-3x leverage. Strictly limit each position to no more than 10%-20% of your total capital, and always set clear stop-loss levels.
Conclusion
MSTR has shown impressive strength recently, rebounding over 60% since its February low and posting a weekly gain of 29.5%. The combination of a 5x leverage effect on Bitcoin and ongoing accumulation expectations are the core drivers of this rally. Institutions maintain a "Strong Buy" consensus with an average price target of $359. For those looking to participate in this trend, Gate’s MSTRX perpetual contracts offer a convenient, 24/7, up-to-10x-leverage tool for going long. However, remember that leverage is a double-edged sword—allocate your positions according to your risk tolerance and always practice sound risk management.
