Strategy (MSTR), led by Michael Saylor, just made another bold move into Bitcoin, purchasing 20,356 BTC for $1.99 billion at an average price of $97,514 per coin, according to Strategy’s announcement on today. This latest buy brings the company’s total Bitcoin holdings to 499,096 BTC, edging it closer to the half-million mark.
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MSTR Uses Convertible Notes to Fuel the Massive Purchase
To fund the purchase, Strategy raised $2 billion through a zero-interest convertible note offering last week. The offering allowed the company to secure capital without immediate dilution of shares, a move that aligns with Saylor’s long-term Bitcoin strategy.
Strategy now holds Bitcoin worth $47.7 billion at current prices, with an average purchase price of $66,357 per BTC. Despite a recent stock dip below $300, MSTR shares ticked up slightly in premarket trading. This signals investor confidence in the company’s aggressive Bitcoin strategy.
Is MSTR Stock a Good Buy?
For investors seeking exposure to Bitcoin, buying MicroStrategy stock can be a compelling alternative. In fact, analysts are highly bullish about MSTR stock, with a Strong Buy consensus rating based on a unanimous 11 Buys. Over the past year, MSTR has increased by more than 275%, and the average MSTR price target of $548.91 implies an upside potential of 83.2% from current levels.
