MicroStrategy continues aggressive Bitcoin accumulation
The business intelligence company made another big move in the cryptocurrency market, purchasing 15,400 Bitcoin between November 25th and December 1st. This latest acquisition brings their total holdings to 402,100 Bitcoins, valued at approximately $38.4 billion.
To fund this acquisition, MicroStrategy issued 3.73 million shares of common stock, raising $1.48 billion.
The average purchase price of their entire Bitcoin holdings is now $58,263 per coin, reflecting the premium they paid in recent acquisitions. This puts MicroStrategy ahead of other public companies and establishes it as the largest corporate holder of Bitcoin.
Stock price trends and market reactions
Despite its ambitious Bitcoin acquisition strategy, MicroStrategy's stock price experienced some short-term volatility, declining 2.3% to $378.73 on December 2, 2024. However, this small setback should be seen in the context of the stock's impressive performance.
Year-to-date, MicroStrategy's stock price has soared more than 500%, significantly outperforming both traditional tech stocks and crypto trading platforms. This impressive return reflects investors' strong confidence in the company's Bitcoin-focused strategy.
The company's inclusion in the Nasdaq 100 Index, scheduled to be announced on December 13, 2024, further confirms its importance in the market. This development could attract further institutional investment and increase market liquidity.
Investors involved in stock trading should be aware that MicroStrategy's stock price performance is increasingly correlated with Bitcoin price movements.
Over four sessions last week, MicroStrategy stock has fallen 38% from its all-time high. This temporarily pushed the price below the $350 level. Since then, the price has stabilized and made a small upward move, potentially returning to a trajectory of testing recent highs. If there is a downturn, Gap's rally on November 11th will be the next downside target, around $285.
MicroStrategy stock chart
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