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Edited by Ritu13 at 22-12-2023 01:58 PM
Blockstream co-founder and CEO Adam Back has reiterated the fact that many experts are beginning to realize the increasing per-share Bitcoin holdings of MicroStrategy Incorporated. Based on this, he suggests investors buy MicroStrategy stocks with Bitcoin.
MicroStrategy is Winning
Back's tweet is a response to early views by Ecoinometrics pointing out that the business intelligence and software company is winning as shown in a chart displaying the current performance of MicroStrategy's stock (MSTR) in relation to the flagship cryptocurrency Bitcoin.
Others are starting to notice the increasing share of Bitcoin in MicroStrategy over time. Purchases at the ATM are somewhat anti-dilutive, reducing the debt ratio, plus with the rising price of Bitcoin, leverage "wins." Ter 2, 2023
MicroStrategy's current attention is not surprising, especially considering its financial reserve allocation policy as the company continues to accumulate more Bitcoin. A few days ago, the Bitcoin-friendly company acquired approximately 16,130 Bitcoin for about $593 million. The average price per unit of the newly acquired Bitcoin was $36,785.
This acquisition brings the total number of Bitcoin currently held by MicroStrategy to 174,530 Bitcoin, considering the company previously announced the purchase of 155 Bitcoin units for $5.3 million in November. As of November 29, MicroStrategy's Bitcoin investment portfolio holds as much as 174,530 Bitcoin units, valued at about $5.28 billion, with an average price of $30,252 per Bitcoin.
With the current price of Bitcoin at $38,875.79, the company's stock has seen significant gains.
MSTR Performance with Bitcoin
Bitcoin has been on a positive trend over the past few weeks, driven by events such as the evolving expectations of the SEC approving a spot Bitcoin ETF and the Fed's decision to pause interest rate hikes.
The leading cryptocurrency is quietly approaching $40,000 and steadily moving towards new highs in 2023. The coin's price is $38,792.97, up 11% this month.
With the amount of BTC owned by MicroStrategy, the current market situation positions the company impressively, with profits sufficient to cover its senior convertible note debt generated when purchasing part of its BTC assets with credit.
Furthermore, MicroStrategy's MSTR is performing well in the market. According to MarketWatch data, the stock's current valuation is $529.98, closing 0.44% higher on Friday. This improvement underscores that Michael Saylor's Bitcoin strategy is proving to be a solid choice, as the stock has largely outperformed its peers since adopting the Bitcoin strategy. |
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Post time 9-12-2023 13:23:34