MicroStrategy Buys More Bitcoins, Boosts Portfolio to $11 Billion

MicroStrategy, a prominent business intelligence software company, has further solidified its position in the cryptocurrency market by increasing its Bitcoin holdings.

The company recently disclosed the purchase of an additional 3,000 bitcoins for $155 million, expanding its total holdings to 193,000 coins, acquired at an average price of $31,555 per BTC.

MicroStrategy has acquired an additional 3,000 BTC for ~$155 million at an average price of $51,813 per #bitcoin.As of 2/25/24, @MicroStrategy now hodls 193,000 $BTC acquired for ~$6.09 billion at an average price of $31,544 per bitcoin. $MSTR https://t.co/micudbYf3P

— Michael Saylor⚡️ (@saylor) February 26, 2024

This move was announced by MicroStrategy’s executive chairman, Michael Saylor, on Monday, indicating a substantial paper profit of $4.1 billion, given Bitcoin’s current price of around $57,000.

MicroStrategy’s entry into the world of cryptocurrencies began in August 2020, and since then, it has become the largest corporate investor in Bitcoin. The company views Bitcoin as a reliable store of value and a hedge against inflation, a sentiment echoed by its decision to issue convertible bonds to finance its ongoing Bitcoin acquisitions.

Investment Banking Firm Gives MicroStrategy Shares Strong Rating

The company’s bullish stance on Bitcoin has not gone unnoticed, as Benchmark, an investment banking firm, recently initiated coverage on MicroStrategy with a buy rating and a price target of $990 per share. Benchmark’s valuation is based on the expected growth of MicroStrategy’s bitcoin portfolio, combined with the success of its core software business.

Benchmark’s optimistic outlook for Bitcoin extends to a projected price of $125,000 by the end of 2025, driven by factors such as the approval of Bitcoin ETFs in the U.S. and the reduction in the supply of new bitcoins following the next halving event in April.

Additionally, Benchmark praised MicroStrategy’s software offerings, which enable enterprises to analyze data and make informed decisions.

MicroStrategy’s stock price surged by more than 8% on Tuesday, reaching $860.75, outperforming the S&P 500 index by more than 400% in the past year, largely attributable to its Bitcoin strategy.

 

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