MicroStrategy Stock Surges as Bitcoin Bet Deepens
MicroStrategy's stock surged by 3.96% after the company disclosed its latest massive bitcoin bet, further deepening its commitment to cryptocurrency.
The company purchased an additional 1,665 bitcoins for $142.7 million at an average price of $85,681, bringing its total holdings to 847,666 bitcoins acquired for approximately $63.95 billion.
This latest purchase comes on top of previous investments, with MicroStrategy's total bitcoin holdings now valued at over $63.9 billion. Despite reporting around $5 billion in USD reserves and roughly $1 billion in cash as of late September, the company still reports negative returns on equity and assets.
The stock's tight link to bitcoin showed up again when MicroStrategy rallied 5% to $162.37 as bitcoin tagged $85,000. Wall Street analysts have taken notice, with B. Riley bumping its price target to $195 from $175 and maintaining a Buy stance.