Janice R. Andrews
MicroStrategy Inc. (MSTR) has reinforced its status as a major bitcoin player by purchasing 55,000 bitcoins for $5.4 billion last week. According to an SEC filing, the company bought the tokens between November 18 and November 24 at an average price of $97,862 per bitcoin.
The acquisition was funded through convertible notes and share sales, aligning with the company’s aggressive bitcoin investment strategy since 2020. This latest purchase raises MicroStrategy’s total bitcoin holdings to approximately 386,700, acquired at a combined cost of $21.9 billion and an average price of $56,761 per bitcoin.
Despite bitcoin’s climb toward $100,000, MicroStrategy’s stock reacted negatively, dropping about 3% by mid-morning Monday. The decline follows a 15% fall last week after short-seller Citron Research raised concerns about the stock being overvalued and disconnected from bitcoin fundamentals, despite expressing long-term optimism for the cryptocurrency.
Analysts remain bullish on MicroStrategy, citing bitcoin’s ongoing rally as a potential catalyst for growth. Bitcoin recently hit an all-time high of $99,400, driven by increasing adoption and market optimism.
As the software company continues to intensify its bitcoin purchases, its future remains closely tied to the performance of the volatile cryptocurrency. Whether this latest bold investment pays off will depend on bitcoin’s trajectory in the coming months.
