Strategy (MSTR) is raising another $2 billion to buy more Bitcoin (BTC).
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The software company turned serial Bitcoin acquirer, which until recently was known as MicroStrategy, is raising the funds via 0% convertible notes. The new money raised will be used to buy more Bitcoin as the price of the largest cryptocurrency by market capitalization dips.
Led by Executive Chairman Michael Saylor, Strategy is the world’s largest corporate holder of Bitcoin, with 478,740 digital tokens that are currently worth more than $45 billion. Saylor recently rebranded the company as Strategy, giving it a new name and logo, to reflect the move away from software and to cryptocurrencies.
Buying the Dip
Strategy has consistently bough more Bitcoin anytime the biggest crypto has seen its price drop. BTC is currently trading at $96,350, down from an all-time high above $109,000 reached on Jan. 20 of this year, the date of U.S. President Donald Trump’s inauguration.
MSTR stock has been on a blistering rally over the past year as investors increasingly view the company as a proxy for Bitcoin. In the past 12 months, Strategy’s share price has increased an incredible 371%. There is speculation that MSTR stock could be added to the benchmark S&P 500 index when it next rebalances in June of this year.
Is MSTR Stock a Buy?
The stock of MicroStrategy currently has a consensus Strong Buy rating among 11 Wall Street analysts. That rating is based on 11 Buy recommendations issued in the past three months. There are no Hold or Sell ratings on the stock. The average MSTR price target of $548.91 implies 65.33% upside from current levels.
