MicroStrategy's Bitcoin Bet Continues to Fuel Stock Rally
MicroStrategy's stock has been rallying after announcing a transformative AI partnership expected to accelerate growth. The company, which holds a significant position in Bitcoin, has seen its shares rise by 3.46% as it continues to invest heavily in the cryptocurrency.
As of September 28th, MicroStrategy held 847,666 BTC, acquired for approximately $63.95B after buying another 1,665 coins at an average price of $85,681. The company still maintains around $5.0B in USD reserves and about $1.0B in cash despite heavy spending on Bitcoin, stock repurchases, and preferred dividends and interest.
The recent use of $174M to repurchase Series A preferred shares and $75.7M for 950 more BTC helped trigger an almost 8% pop in MSTR shares. The company has logged sharp price gains of 8.7%, 12.7%, and 5% in recent sessions, trading tightly with Bitcoin's run to $85,000.
B. Riley lifted its MSTR price target to $195 and kept a Buy rating, while FactSet data show a Buy consensus and a higher mean target of $234.11.