The post MicroStrategy Stock Hits Highest Price Since Bitcoin Buying Spree Began appeared on BitcoinEthereumNews.com.

MicroStrategy’s stock price popped 6% on Thursday to above $230, touching a nearly 25-year high as a six-week rally for the world’s largest corporate holder of Bitcoin continued. Less than two months ago, MicroStrategy shares were valued at $118, trending lower as Bitcoin hovered around $56,000 on Sept. 6. While the digital asset’s price has climbed 20% since then to $67,600, MicroStrategy’s share price has surged by comparison, nearly doubling over that period of time. Shedding its label as an enterprise software firm, MicroStrategy has positioned itself as a Bitcoin development company. Earlier this month, MicroStrategy co-founder and Executive Chairman Michael Saylor said that endeavor involves becoming a “Bitcoin bank,” which he had described as creating “Bitcoin capital market instruments across equity, convertibles, fixed income, and preferred shares.” The firm also previously disclosed plans to create a decentralized identity protocol on Bitcoin. The company’s trove of 252,220 Bitcoin is currently valued at $17 billion, reflecting over 1% of all the Bitcoin that will ever be mined. Bringing Bitcoin onto its balance sheet for the first time in 2020, MicroStrategy’s game plan for acquiring Bitcoin has vastly transformed since then. MicroStrategy has been leveraging equity and debt to purchase more Bitcoin than it could otherwise. This year, that’s involved issuing convertible notes, which can later be turned into shares by a buyer, and issuing equity through an at-the-money offering program. The company offers leveraged exposure to Bitcoin, according to the asset manager Bernstein, which rated the company “Outperform,” with a price target of $290 in a report this week. “We believe investors should view MicroStrategy as an active leveraged Bitcoin equity strategy,” Bernstein analysts wrote. “It actively toggles between equity and long-term convertible debt to offer leveraged exposure to Bitcoin while maintaining conservative leverage.” While spot Bitcoin ETFs have seen over…

---

Filed under: News - @ October 24, 2024 6:17 pm