MicroStrategy (NASDAQ:MSTR) shares zoomed up by nearly 10% today after the Bitcoin development company disclosed another major Bitcoin (BTC-USD) buy. Between February 26 and March 10, the firm purchased nearly 12,000 BTC for about $821.7 million at an average price of 68,477 per BTC.
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Last week, the Michael Saylor-led company raised nearly $782 million from a convertible debt offering. MSTR channeled these funds, alongside $40.6 million from its excess cash, to acquire BTC. The company now holds nearly 205,000 BTC at an average acquisition price of $33,706 per BTC. With soaring BTC prices, the value of MSTR’s crypto hoard is now inching closer to $15 billion.
Importantly, Saylor does not plan to sell any of MSTR’s BTC holdings anytime soon. Last month, Saylor told Bloomberg, “Bitcoin is the exit strategy.” Saylor, a staunch supporter of BTC, believes the cryptocurrency is superior to other asset classes, such as gold or real estate.
Is MSTR Stock a Good Buy?
Over the past year, MSTR’s stock has proved to be a better way to bet on the rise of Bitcoin than the cryptocurrency itself. The company’s share price has galloped by nearly 574% over the past 52 weeks. The nearly 250% rally in BTC during this period pales in comparison. Overall, the Street has a Strong Buy consensus rating on MicroStrategy alongside an average price target of $991.67. This points to a potential downside of 36.6% in the stock.
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