Financial Insights That Matter
Strategy Bolsters Bitcoin Arsenal by Snagging over 7,000 BTC
Strategy MSTR, formerly known as MicroStrategy, has resumed its aggressive Bitcoin purchasing strategy, acquiring an additional 7,633 BTC. This purchase brings the company’s total Bitcoin holdings to an impressive 478,740 BTC. Executive Chairman Michael Saylor shared the news on X, revealing that the company invested $742.4 million in Bitcoin last week at an average price of $97,255 per coin. As a result, the company’s average cost per Bitcoin has increased to $65,033.
Recent Bitcoin Acquisition and Investment Strategy
Strategy’s latest purchase demonstrates its unwavering commitment to Bitcoin. The company used proceeds from the sale of shares and a perpetual preferred equity offering by Strike (STRK) to fund this acquisition.
- Recent Purchase: Strategy bought 7,633 BTC, bringing its total holdings to 478,740 BTC.
- Investment Details: The company invested $742.4 million, with an average purchase price of $97,255 per Bitcoin.
- Cost per Bitcoin: The average cost per Bitcoin for Strategy now stands at $65,033.
Bitcoin Purchases Pause Due to Q4 Loss
The company had paused its Bitcoin buying spree just prior to this acquisition, likely due to a blackout period before its earnings announcement. On February 6, Strategy reported a significant fourth-quarter net loss, a stark contrast to the profit it reported during the same period the previous year.
- Q4 Loss: Strategy reported a notable net loss in the fourth quarter, reversing last year’s profit.
- Pause in Acquisitions: The company paused its Bitcoin buys likely due to the blackout period coinciding with the earnings report.
Bullish Commitment to Bitcoin
Despite the fluctuating market, Michael Saylor’s cryptic tweet, “Death to the blue lines. Long live the green dots,” hints at the company’s ongoing belief in Bitcoin’s long-term value. This move reinforces Strategy’s position as a staunch advocate of the cryptocurrency, signaling confidence in Bitcoin’s future despite market volatility.
- Saylor’s Tweet: Michael Saylor hinted at the purchase, reaffirming his bullish stance on Bitcoin.
Analysts’ Outlook on MSTR Stock
Wall Street analysts have given MSTR stock a Strong Buy consensus rating. The stock has gained more than 350% over the past year, reflecting investor optimism. The average price target for MSTR stands at $548.91, suggesting a potential upside of 67.6% from current levels.
- Stock Rating: MSTR holds a Strong Buy consensus rating based on 11 unanimous Buys in the last three months.
- Stock Performance: MSTR has gained over 350% in the past year.
- Price Target: The average price target of $548.91 suggests 67.6% upside potential.
Important Highlights
- Recent Purchase: Strategy acquired 7,633 BTC, bringing total holdings to 478,740 BTC.
- Investment Details: The company invested $742.4 million, raising the average cost per Bitcoin to $65,033.
- Q4 Loss: Strategy reported a significant Q4 loss, marking a reversal from the prior year’s profit.
- Funding Source: The Bitcoin purchase was funded by proceeds from selling shares and a preferred equity offering by Strike.
- Bullish Stance: CEO Michael Saylor continues to express strong confidence in Bitcoin despite market fluctuations.
- Stock Rating: MSTR has a Strong Buy consensus rating with a price target of $548.91, indicating 67.6% upside potential.
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