Software analytics company MicroStrategy (MSTR) continued its Bitcoin buying spree after disclosing a $101 million purchase of 1,070 BTC at an average price of $94,000 between December 30 and 31. This marks its ninth consecutive weekly buy. However, the pace of purchases has slowed compared to earlier weeks. Indeed, 2,100 BTC were bought the previous week, while 5,300 and 15,400 tokens were purchased during the weeks that ended on December 23 and December 16, respectively.
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As of now, the company’s Bitcoin holdings stand at approximately 447,470 BTC, which is valued at $45.2 billion at current market prices, compared to its cumulative purchase cost of $28 billion. No additional purchases have been made since Dec. 31.
MicroStrategy also revealed it expects to record $1 billion in impairment losses for Q4 2024. However, it is worth noting that starting next year, the company will adopt fair-value accounting for its Bitcoin holdings, which will change how it reports future gains or losses.
MicroStrategy’s Bitcoin Strategy Has Sparked Mixed Reactions
MicroStrategy’s Bitcoin-focused strategy has sparked mixed reactions. Supporters point to its impressive outperformance of Bitcoin. However, critics argue that the company resembles a Bitcoin holding firm more than a software company, which leaves investors vulnerable to significant risk and volatility. Some analysts warn that this aggressive approach could jeopardize long-term shareholder stability despite recent market gains.
Is MSTR a Good Stock to Buy?
Overall, analysts have a Strong Buy consensus rating on MSTR stock based on eight Buys assigned in the past three months, as indicated by the graphic below. However, after a 497% surge in its share price over the past year, the average MSTR price target of $529.57 per share implies 48.33% upside potential.
