How is MSTR's recent trend, and how to go long on MSTR in Gate TradFi?

Recently, MSTR (MicroStrategy Inc - Class A) has continued to surge in popularity in the crypto market, with its stock price rebounding over 60% since the February lows. According to Gate TradFi data, as of April 20, MSTR is temporarily reported at $166.3, with a 12% increase over the past 24 hours. Why is MSTR so strong? How can you efficiently participate in MSTR’s long positions on the Gate platform?

Behind MSTR’s Strong Rebound: An Analysis of Three Driving Forces

Driving Force One: Bitcoin Price Recovery, Return to Profitability

As the world’s largest publicly traded company holding Bitcoin, MSTR (formerly MicroStrategy) has its stock price highly correlated with Bitcoin’s price. As of April 20, Bitcoin’s price remained around $74,300, having significantly rebounded from February lows. The company currently holds 780,897 BTC, with an average cost basis of about $75,577.

Driving Force Two: 5x Leverage Amplifies Gains

MSTR is essentially a “leveraged Bitcoin” asset. Recent data shows that MSTR’s weekly gain (29.5%) far exceeds Bitcoin’s same-period increase (5.7%), implying an actual beta close to 5.2. This means that when Bitcoin rises 1%, MSTR typically rises about 5%. However, this leverage works both ways—when Bitcoin drops 36% at the start of the year, MSTR also fell by 44%.

Driving Force Three: Continued Accumulation Expectations and Institutional Optimism

Recently, company executives hinted on social media about “thinking bigger,” and the balance sheet still holds about $2.25 billion in cash reserves, with a net leverage ratio of only 10%. The market generally expects the company to continue increasing its Bitcoin holdings. On the institutional side, according to Barchart data, analyst consensus ratings for MSTR remain “Strong Buy,” with an average target price of around $359, implying more than double the current price.

How to Long MSTR on Gate TradFi: Complete Guide to MSTRX Contract Operations

Gate Exchange has launched the MSTRX perpetual contract (tokenized MSTR contract product), allowing users to trade long and short positions using USDT, supporting up to 10x leverage, and enabling 24/7 trading. Here are the specific steps:

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 to view all supported tokenized stock assets, among which MSTRX (MicroStrategy tokenized stock contract) is the trading target.

Step 2: Choose trading pair and leverage

Switch to the “Contracts” tab within the xStocks section, select the MSTRX/USDT trading pair, and choose leverage from 1x to 10x according to your risk tolerance. Contract trading is settled in USDT, with the system calculating profit and loss in USDT, and supports instant closing.

Step 3: Select “Long” to open a position

When expecting MSTR’s price to continue rising, choose the “Long” position, input the opening amount, and set the margin ratio. It is recommended to set a stop-loss price simultaneously to control downside risk.

Core Advantages of Going Long MSTR

1. 24/7 Trading: Unlike traditional US stock markets that only operate during specific hours on weekdays, Gate’s MSTRX contracts support round-the-clock trading, allowing users to respond to market changes anytime.

2. Leverage to Enhance Returns: MSTR itself is a leveraged Bitcoin asset. Adding leverage on top of this can further magnify upside gains.

3. Low Barrier to Participation: Supports fractional trading, with a minimum of 0.0001 units, eliminating the need for whole-share trading.

Risk Tips and Position Management Suggestions

While going long MSTR offers attractive potential returns, risks should not be overlooked. First, MSTR’s 5x leverage on Bitcoin is bidirectional—if Bitcoin pulls back, MSTR’s decline will be amplified accordingly. Second, leverage in contract trading can further magnify losses, and during market volatility, it may lead to margin liquidation. Additionally, the company continues to raise funds through convertible bonds and preferred shares to buy Bitcoin, which could cause some dilution for existing shareholders.

Positioning advice: For investors optimistic about Bitcoin’s medium-term trend and seeking to amplify gains, consider establishing long positions with 1-3x leverage in batches, strictly limiting individual positions to no more than 10-20% of total funds, and setting clear stop-loss levels.

Summary

MSTR has recently performed strongly, rebounding over 60% from the February lows, with weekly gains reaching 29.5%. The core drivers are the 5x leverage effect relative to Bitcoin and the company’s continued accumulation expectations. Institutional consensus ratings remain “Strong Buy,” with an average target price of $359. For users wishing to participate in this rally, Gate’s MSTRX perpetual contract offers a convenient tool for long positions with 24/7 trading and up to 10x leverage. However, remember that leverage is a double-edged sword—manage your positions prudently according to your risk tolerance and always implement risk controls.