MicroStrategy Acquires $5.4 Billion Worth of Bitcoin, Stock Prices Drop
Hey there! Exciting news from MicroStrategy – they just snapped up another 55,000 bitcoins for a whopping $5.4 billion! This purchase comes hot on the heels of the cryptocurrency hitting record highs. As a result, the company’s shares took a bit of a dip, sliding around 3% after the announcement.
In a recent filing with the SEC, MicroStrategy revealed that they shelled out $5.4 billion for these bitcoins between Nov. 18 and Nov. 24, snagging them at an average price of $97,862. To fund this purchase, they tapped into proceeds from convertible notes and share sales.
MicroStrategy has been diving into the world of bitcoin since 2020 and has been ramping up their purchases, especially as the price of bitcoin surged over $99,000 following the recent US presidential election. In fact, their previous weekly purchase included 51,780 bitcoins at an average price just over $88,500 per token.
Currently, MicroStrategy holds a staggering 386,700 bitcoins, with a total purchase price of about $21.9 billion and an average purchase price of approximately $56,761 per bitcoin – talk about a smart investment!
Despite a small stumble last week when shares dropped 15% after some negative comments from short seller Citron Research, Wall Street analysts remain bullish on the stock. With the price of bitcoin flirting with $100,000, analysts are optimistic about where things are headed. In fact, analysts at Bernstein raised their price target on the stock to $600 from $290, while Benchmark upped their target to a Street high of $640, from $450.
The CEO of MicroStrategy, Michael Saylor, is confident in the future of bitcoin, predicting that the price could reach an impressive $225,000 by the end of 2026. It’s clear that MicroStrategy is making some bold moves in the cryptocurrency space, and the market is watching closely to see where this journey leads.
