MicroStrategy (MSTR) has significantly bolstered its Bitcoin (BTC-USD) holdings, spending $5.4 billion to acquire an additional 55,000 Bitcoins last week amidst the cryptocurrency reaching all-time highs, according to a Securities and Exchange Commission filing. The company, which has positioned itself as a Bitcoin proxy since starting its token purchases in 2020, bought these Bitcoins at an average price of $97,862, using funds from convertible notes and share sales.
The timing of these acquisitions aligns with Bitcoin’s surge past $99,000 following Donald Trump’s recent presidential win, which has spurred increased interest and investment in cryptocurrencies. This purchase follows another substantial buy of 51,780 Bitcoins at just over $88,500 each, bringing MicroStrategy’s total Bitcoin stash to approximately 386,700, with an average purchase price of about $56,761 per Bitcoin.
Despite a significant year-to-date increase of over 545% in MicroStrategy’s stock price, shares dropped over 15% last week after Citron Research announced a short position against the stock. However, Wall Street’s outlook remains positive, with analysts like those at Bernstein and Benchmark raising their price targets to $600 and $640 respectively, driven by Bitcoin’s performance and future projections. Specifically, Mark Palmer from Benchmark, speaking on Yahoo Finance’s Opening Bid podcast, suggested that Bitcoin could reach $225,000 by the end of 2026, which underpins their bullish stance on MicroStrategy’s stock.
Bitcoin has been hovering around the $100,000 mark, reflecting both the cryptocurrency’s volatility and the market’s speculative fervor. This scenario has placed MicroStrategy at the center of attention, not just for its software business but increasingly for its role in the crypto investment landscape.
Price Action: MSTR is trading 3.33% lower at $407.20, while Bitcoin is down 0.89% at $95,762.11 at press time.
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