MicroStrategy, the enterprise software firm, has seen a slight drop in its share price, following the announcement of its significant Bitcoin purchase. The company, led by Michael Saylor, acquired an additional 16,130 Bitcoin (BTC) for approximately $593.3 million on Thursday, November 30, 2023. This latest acquisition brings MicroStrategy's total Bitcoin holdings to 174,530, with an average purchase price of $30,200 per BTC. Despite a slight over 2% dip in its shares, MicroStrategy's stock has recently hit a two-year high, bolstered by a bullish stance from investors.
The company is not stopping here; it is preparing for further Bitcoin investments with a proposed $750 million stock sale. The funds raised are earmarked for debt repurchase and to enhance working capital, indicating a continued commitment to its Bitcoin strategy. This strategy has paid off so far, with MicroStrategy's stock experiencing a year-to-date increase of 128.78%, outpacing Bitcoin's own impressive gain of 258.20%.
Today, Bitcoin's price has surged past $38,000, following the publicity of MicroStrategy's latest purchase. The market's optimism is further fueled by the potential approval of a Bitcoin ETF, which could significantly increase the value of MicroStrategy's holdings, currently valued at $6.50 billion.
Wall Street analysts remain bullish on MicroStrategy (NASDAQ:MSTR), maintaining a Strong Buy consensus with an average price target that suggests about a 9.59% upside from its current share price.
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