TL;DR
- MicroStrategy acquired an additional 11,931 BTC for $786 million, bringing its total to 226,331 BTC. It holds 1.1% of the total BTC supply.
- The purchase was funded through convertible notes and cash at an average cost of $65,883 per BTC.
- Bernstein initiated coverage of MicroStrategy with an “overweight” rating and a price target of $2,890 per share.
MicroStrategy, led by Michael Saylor, has once again shaken up the crypto market after announcing the acquisition of a significant amount of Bitcoin. With an additional investment of $786 million, the company secured 11,931 more BTC for its portfolio, totaling 226,331 BTC. The purchase was financed through the issuance of convertible notes and available cash, at an average cost of approximately $65,883 per BTC.
MicroStrategy continues to strengthen its position within the crypto industry, solidifying itself as one of the leading corporate holders of Bitcoin globally. Since its entry into the crypto market in August 2020 as a significant player, the company has amassed around 1.1% of the total Bitcoin supply, currently valued at approximately $14.5 billion. Its strategic focus has turned it into a magnet for major investments, both in debt and equity, driven by an aggressive BTC buying strategy that has outperformed the market.
MicroStrategy has acquired an additional 11,931 BTC for ~$786.0M using proceeds from convertible notes & excess cash for ~$65,883 per #bitcoin. As of 6/20/24, $MSTR hodls 226,331 $BTC acquired for ~$8.33B at average price of $36,798 per bitcoin.https://t.co/jE9dGqqnON
— Michael Saylor⚡️ (@saylor) June 20, 2024
High Expectations for MicroStrategy’s Future
In parallel with the acquisition, Bernstein, a prestigious Wall Street wealth management firm, has initiated coverage of MicroStrategy with an “overweight” rating and an ambitious price target of $2,890 per share. This forecast represents an 80% increase from its last closing price, reflecting high optimism about the company’s future performance.
However, the BTC market faces numerous challenges. Recent data shows a concerning trend of outflows from Bitcoin ETFs and the unwinding of basis arbitrage trades. This has impacted overall market stability. Experts like Jag Kooner from Bitfinex warn that these dynamics could intensify volatility, especially during price adjustment periods like the current one.
Under Michael Saylor’s leadership, MicroStrategy continues to build and lead corporate adoption of Bitcoin. Investors closely monitor the company’s moves, crucial for understanding its implications across the market and the industry as a whole.
