MicroStrategy Adds 1,070 Bitcoins, MSTR Stock Rises 4.5%

MicroStrategy has once again expanded its Bitcoin holdings, purchasing 1,070 BTC for $101 million. This acquisition has sent shockwaves through the market, helping Bitcoin surge by 3.6%. The price crossed the significant $100,000 mark, sparking optimism in the crypto world. 

MicroStrategy's Continued Commitment to Bitcoin

The new Bitcoin purchase is part of an ongoing strategy that has now lasted for nine consecutive weeks. MicroStrategy holds a staggering 447,470 BTC, valued at $45.3 billion. With an average purchase price of $62,470 per Bitcoin, the company is sitting on a 62% profit. 

Despite facing a $1 billion impairment loss in Q4, MicroStrategy continues to focus on strengthening its Bitcoin holdings. The company has also switched to fair-value accounting for its crypto holdings. 

Analysts Predict Significant Growth for MSTR Stock

2024 has been an extraordinary year for MicroStrategy’s stock, which has soared by 330%. This performance has far outpaced Bitcoin’s own gains, adding to investor excitement. Benchmark analysts, led by Mark Palmer, have set a price target of $650 for the stock. 

This represents an impressive 91% upside from the current price, driven by the growing value of MicroStrategy’s Bitcoin holdings and the strong performance of its software business.

MicroStrategy plans to raise $2 billion in Q1 2025 through the sale of perpetual preferred stock. The company's ongoing Bitcoin investments position it for long-term growth in both crypto and software sectors.