MicroStrategy (MSTR) made a massive move in the cryptocurrency market, purchasing 55,000 Bitcoin for a hefty $5.4 billion. This latest acquisition, reported on Nov. 25, pushes the company’s total BTC holdings to an eye-popping 386,700 coins, valued at a cumulative cost of $21.9 billion. The purchase was made between Nov. 18 and Nov. 24 at an average price of $97,862 per coin, demonstrating a continued bullish stance on Bitcoin despite its near $100,000 value. According to MicroStrategy’s filing, the funding came from a mix of equity and debt offerings, which included $2.97 billion raised through a private offering of 0% convertible senior notes due 2029.
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MicroStrategy Goes All-In on Bitcoin
This move isn’t just a fluke—MicroStrategy has a clear strategy. With Bitcoin’s value hovering near new highs, the firm sees huge potential in Bitcoin’s long-term growth. The company’s strategy is to maximize shareholder value by making Bitcoin the central driver of its financial portfolio. The company’s proprietary “Bitcoin Yield” metric reflects this, showing an increase in the ratio of Bitcoin holdings to shares outstanding. By Nov. 24, MicroStrategy’s BTC Yield reached 59.3%, up significantly from 35.2% earlier in the year. The company’s ongoing investments are also supported by its at-the-market (ATM) equity program, with $12.8 billion in remaining capacity, as detailed in the firm’s report.
Semler Scientific Follows in MicroStrategy’s Footsteps
MicroStrategy’s bold moves seem to be inspiring others. Semler Scientific (SMLR), a healthcare company, has also expanded its Bitcoin holdings. Between Nov. 18 and Nov. 22, Semler acquired 297 BTC for $29.1 million, raising its total to 1,570 BTC. Just like MicroStrategy, Semler’s focus is on using Bitcoin as a treasury asset. The company increased its ATM equity program by $50 million, reaching a total capacity of $100 million. As of Nov. 22, Semler’s BTC Yield stood at 58.4%, which shows its commitment to Bitcoin as a valuable asset in its financial strategy.
Is MicroStrategy a Good Buy Right Now?
Turning to Wall Street, the analysts’ consensus rating for MicroStrategy is Strong Buy based on eight Buy ratings over the last three months. That comes with an average MSTR price target of $357.38, a high of $570, and a low of $270. This represents a potential downside of 12% for MSTR shares.
