MicroStrategy, a company that has become a proxy for bitcoin, announced on Monday that it spent $5.4 billion to acquire 55,000 bitcoins over the past week. The bitcoins were purchased at an average price of $97,862 per token.
The move comes as bitcoin continues its rally above $99,000 following Donald Trump’s presidential win earlier this month. MicroStrategy has been buying tokens since 2020 and has intensified its purchases in recent weeks.
As of Sunday, the company held approximately 386,700 bitcoins worth around $21.9 billion, with an average purchase price of about $56,761 per bitcoin. MicroStrategy’s stock has seen a wild run this year, up over 515% year to date, but fell last week after short seller Citron Research expressed skepticism about the company’s prospects.
Despite the concerns, Wall Street analysts have been increasingly bullish on the stock given bitcoin’s strong run and their predictions of future price increases. Analysts at Bernstein raised their price target on MicroStrategy to $600 from $290, while Benchmark raised its target to a high of $640.
Some analysts predict that the price of bitcoin will reach $225,000 by the end of 2026, which has fueled optimism about the stock’s prospects. As the company continues to accumulate bitcoins, investors are taking notice and speculating about the potential for further price increases.
Source: https://finance.yahoo.com/news/microstrategy-spends-54-billion-buying-another-55000-bitcoins-shares-slide-165131332.html