On November 25, 2024, MicroStrategy (MSTR) announced that it purchased 55,000 bitcoins for $5.4 billion last week. The acquisition occurred as bitcoin reached all-time highs, trading at an average price of $97,862 per token.
- MicroStrategy purchased 55,000 bitcoins for $5.4 billion.
- Shares fluctuated, recovering from an 8% drop.
- Company funded purchases through notes and share sales.
- MicroStrategy holds approximately 386,700 bitcoins total.
- Analysts raised MicroStrategy's stock price targets significantly.
- Bitcoin prices approached $100,000 recently.
Following the announcement, MicroStrategy’s shares fluctuated, initially dropping over 8% but recovering by mid-morning. The company has been actively acquiring bitcoins since 2020, with this latest purchase funded through proceeds from convertible notes and share sales.
MicroStrategy has emerged as a significant player in the cryptocurrency market, having acquired a total of approximately 386,700 bitcoins at an average price of $56,761. The recent purchase of 55,000 bitcoins is part of a broader strategy to leverage the rising value of bitcoin, which has recently peaked above $99,000 following Donald Trump’s presidential win.
Key details of the acquisition include:
- Total bitcoins purchased: 55,000
- Total expenditure: $5.4 billion
- Average purchase price: $97,862 per bitcoin
MicroStrategy’s stock has seen a dramatic rise of over 515% year-to-date, although it faced a decline of more than 15% last week after Citron Research announced a short position against the stock. Despite this, analysts remain optimistic about the company’s future, with Bernstein raising its price target to $600 and Benchmark to $640, citing potential growth in bitcoin’s value.
In summary, MicroStrategy continues to expand its bitcoin holdings significantly, reflecting its commitment to the cryptocurrency market amidst fluctuating stock performance and optimistic analyst forecasts.
