MicroStrategy’s stock price jumped nearly 26% on Monday, hitting a new all-time high mark above $351 after the world’s largest corporate treasury reserve holder of Bitcoin unveiled its latest acquisition.
MSTR finished the day at a price of $340, but has climbed as high as $354 in after-hours trading, per Google Finance.
Padding its corporate coffers by over 27,200 BTC, MicroStrategy said Monday that it had acquired over $2 billion worth of the asset between October 31 and November 10. As of this writing, the company’s trove of 279,420 Bitcoin is worth about $24.3 billion.
Shares in the Tyson, Virginia-based firm have so far rallied 396% year-to-date, outpacing Bitcoin’s 97% climb to a current price of approximately $87,000 over the same period. Bitcoin hit a new peak price of $88,364 late Monday afternoon, per data from CoinGecko, but has dipped since.
Alongside Donald Trump’s White House win last week, MicroStrategy’s stock price has been riding a wave of investor enthusiasm rooted in promises of a more crypto-friendly administration.
Established in 1989, the software firm that now describes itself as a Bitcoin development company first began purchasing BTC in August 2020. Years later, MicroStrategy’s Bitcoin-buying spree has helped the firm surpass an all-time high stock price of $313 that was originally set in March 2000, according to Macrotrends.
Bitcoin Is in Price Discovery Again—How Much Higher Will It Go?
Bitcoin is on a roll—again. The biggest digital coin was soaring by the time traditional markets opened Monday morning. By midday New York time, it had already broken record after record. Now, Bitcoin’s price has already popped above $88,000 per coin, according to CoinGecko, after having shot up 10% in the past 24 hours. Over a seven-day period, the asset has jumped 30%. Some analysts told Decrypt that it still has a long way to go due to hype around the election and subsequent Trump trade....
Last month, MicroStrategy announced a three-year plan to purchase $42 billion worth of Bitcoin through capital raises. By issuing equity and debt, the company has effectively turned itself into a leveraged bet on Bitcoin while accumulating the asset for investors.
“Our focus remains to increase value generated to our shareholders by leveraging the digital transformation of capital,” MicroStrategy President and CEO Phong Le said in a statement last month. “As a Bitcoin treasury company, we plan to use the additional capital to buy more Bitcoin as a treasury reserve asset.”
MicroStrategy Plans to Raise $42 Billion to Buy More Bitcoin
Bitcoin development company MicroStrategy today reported a loss with its latest quarterly results—but the company is going all-in on the orange coin. In a Wednesday announcement, the company (NASDAQ: MSTR) said it plans to raise $42 billion of capital over the next three years to buy more Bitcoin. The strategy is part of the firm's “21/21 Plan,” MicroStrategy CEO Pong Le said in a statement, in which $21 billion would come from equity raises and another $21 billion would be sold as fixed income...
This year, MicroStrategy has raised capital by issuing convertible notes, which can later be turned into shares by a buyer. It has also issued equity through an at-the-money offering program, diluting shareholders to later buy Bitcoin with the proceeds.
Even though spot Bitcoin ETFs have pulled in more than $26 billion worth of inflows this year, MicroStrategy’s status has persisted as a popular proxy bet for the asset. Meanwhile, the company’s valuation has risen far past that of its Bitcoin holdings.
MicroStrategy Now Holds Nearly $23 Billion in Bitcoin With Latest Buy
Software company-turned Bitcoin development firm MicroStrategy now owns $22.8 billion worth of the leading cryptocurrency after snapping up another 27,200 BTC. The company said Monday that it scooped up 27,200 Bitcoin between October 31 and November 10, spending just over $2 billion—an average price of $74,463 per coin. The Tyson, Virginia-based firm now holds 279,420 Bitcoin in its treasury. MicroStrategy has spent a total of $11.9 billion on the cryptocurrency at a price of $42,692 per coin—w...
With a market capitalization of $68.9 billion, MicroStrategy’s so-called premium to net asset value (NAV) reached a record high of 2.8x Monday, according to MSTR Tracker.
In a report last month, the asset manager Bernstein said the company was “building a case” for that premium with time, proving it can increase its Bitcoin holdings per share at a sustainable rate amid a lack of comparable investment vehicles.
Edited by Andrew Hayward
