Micro Strategy (MSTR) He said on Monday Another 55,000 Bitcoin (BTC-USD) were bought last week for $5.4 billion as the world’s largest cryptocurrency traded at all-time highs.
The company’s shares traded on either side of the flat line after the news, recovering from a decline of more than 8% by 10:45 a.m. ET.
In a filing with the Securities and Exchange Commission, MicroStrategy said it spent $5.4 billion to acquire these bitcoins between November 18 and 24, purchasing bitcoin at an average price of $97,862.
The company said it used proceeds from convertible bonds and stock sales to fund the purchase.
The application software company, which has become a Bitcoin steward, has been purchasing tokens since 2020.
In recent weeks, it has intensified its purchases as Bitcoin rose to levels above $99,000 after Donald Trump won the presidency earlier this month.
The company’s previous weekly purchase included 51,780 bitcoins at an average price of just over $88,500 per token.
As of Sunday, MicroStrategy held approximately 386,700 bitcoins, acquired for a total purchase price of approximately $21.9 billion and an average purchase price of approximately $56,761 per bitcoin.
MicroStrategy stock has been on a hot streak this year, up more than 515% year to date, though shares fell more than 15% last week after short-seller Citron Research said they were betting against the stock.
The short seller said in an
However, Wall Street analysts have been increasingly bullish on the stock given Bitcoin’s rise and where bulls say it could be headed.
Bitcoin has been flirting with $100,000 since last Friday, reaching highs of over $99,400.
Read more: Bitcoin Sets Another Record: Is This a Good Time to Invest?
Analysts at Bernstein raised their price target on the stock to $600 from $290, while Benchmark raised its target to a Street high of $640, up from $450.
In an interview on Yahoo Finance’s Opening Bid podcast, Benchmark’s Mark Palmer said: “In our MicroStrategy analysis, we assume that the price of Bitcoin will reach $225,000 by the end of 2026.”
Ines Ferry is Yahoo Finance’s chief business correspondent. Follow her on X in @ines_ferre.
Click here for in-depth analysis of the latest stock market news and events that move stock prices
Comments are closed, but trackbacks and pingbacks are open.