MicroStrategy Breaks Buying Pause, Adds $370M to Bitcoin Holdings
MicroStrategy, once known as MicroStrategy (NASDAQ: MSTR), has ended its two-month buying pause and purchased $370 million in Bitcoin in late August. This purchase brings the company's total Bitcoin holdings to 845,050 coins, worth around $68.5 billion at current prices.
The company's CEO Phong Le stated that Strategy is still bullish on Bitcoin and only sold some of its holdings earlier this year to cover preferred dividends and reduce debt.
Strategy's Bitcoin purchases are significant because the company is now undervalued relative to its Bitcoin holdings, with its market cap standing at $47.3 billion and enterprise value at $50.3 billion.
Despite Strategy's optimism, experts warn that near-term headwinds for Bitcoin could limit its gains, including elevated Treasury yields and rising interest rates that may drive investors towards more conservative investments.