MicroStrategy has doubled down on its Bitcoin buying spree, snapping up another $1.5 billion worth of the cryptocurrency at record prices. The move has sent its stock soaring once more, cementing its position as a major player in both corporate and crypto markets.
Another Bold Bitcoin Move
MicroStrategy’s appetite for Bitcoin seems insatiable. Last week, the company acquired 15,350 Bitcoins at an average price of $100,386 per coin, according to a company filing released Monday. That’s a total investment of $1.5 billion in a single swoop.
This latest purchase brings the company’s holdings to a staggering 439,000 Bitcoins, acquired at a cumulative cost of $27.1 billion. While MicroStrategy started its Bitcoin buying strategy back in 2020 as a hedge against inflation, the scale and timing of this purchase—amid Bitcoin’s sharp surge above $100,000—are catching investors’ attention.
At current market prices, MicroStrategy’s Bitcoin portfolio is now worth over $45 billion, an extraordinary increase that has rewarded the company’s bold strategy.
A Stock in Sync With Bitcoin
MicroStrategy has become synonymous with Bitcoin, and its stock price is a mirror of the cryptocurrency’s performance. So far in 2024, the company’s shares have rocketed 548%, far outpacing Bitcoin’s impressive 153% gain over the same period.
The stock climbed another 4.2% on Monday, reaching $425.66 in early trading as Bitcoin surged past $106,000. The rally underscores how tightly MicroStrategy’s valuation is tied to its massive cryptocurrency holdings.
For context, Bitcoin’s recent climb has been driven by a mix of institutional interest, bullish sentiment, and speculation surrounding its adoption in mainstream financial systems.
Welcome to the Nasdaq 100
MicroStrategy’s Bitcoin-fueled rise has earned it a spot in the Nasdaq 100—a significant milestone for the software company. Starting next week, the stock will join the index of tech-heavy giants, further validating its strategy in the eyes of investors.
Being included in the Nasdaq 100 brings tangible benefits:
- It boosts the stock’s visibility among institutional investors.
- It increases trading volume as index funds and ETFs adjust to include the stock.
In short, inclusion could attract more investor interest and add upward momentum to MicroStrategy’s shares.
Analysts Remain Bullish
The market reaction hasn’t been lost on Wall Street. TD Cowen analyst Lance Vitanza reaffirmed a Buy rating on MicroStrategy stock, setting a price target of $550.
Vitanza believes MicroStrategy will continue to outperform Bitcoin itself in the mid-to-long term, citing growing institutional adoption and the rising price of Bitcoin as tailwinds.
“Joining the Nasdaq 100 can only help advance broader adoption of Bitcoin throughout developed (and developing) financial systems—let alone the underlying price of Bitcoin and not to mention MSTR shares themselves,” he said.
This optimistic outlook suggests that investors betting on MicroStrategy are buying into more than just Bitcoin; they’re buying into its outsized exposure to crypto market growth.
What’s Next for MicroStrategy?
With Bitcoin hovering above $100,000, the question now is whether MicroStrategy will continue its aggressive accumulation strategy. CEO Michael Saylor, the architect of the company’s Bitcoin-focused vision, has repeatedly signaled confidence in the long-term value of the cryptocurrency.
To date, MicroStrategy’s strategy has made it the largest corporate holder of Bitcoin. But as Bitcoin prices surge, the company’s gamble is increasingly under the microscope. Investors are watching closely to see how it navigates the volatility that comes with such massive exposure.
At this point, the story is clear: MicroStrategy is betting big on Bitcoin, and for now, it’s winning.
