MSTR Stock Rockets on Aggressive Bitcoin Buying
MicroStrategy's (MSTR) stock continues to surge, reaching a new high of $160.5 on October 1st. The company has been aggressively buying Bitcoin, with its latest purchase adding 2,615 coins at an average price of $83,674. This brings its total holdings to 847,666 Bitcoin, acquired for approximately $63.95B.
The financial statements reveal that MSTR's valuation is heavily influenced by its Bitcoin stash, with a price-to-sales ratio above 129 and enterprise value around $83.1B. Despite reporting solid core software margins of 67.6%, the company's bottom-line metrics are deeply in the red due to massive accounting swings related to Bitcoin.
MicroStrategy's balance sheet shows total assets of about $52.6B, very low current liabilities of roughly $495.1M, and a strong current ratio near 5.4. The company has a modest debt-to-equity ratio of 0.22 and a book value per share around $73.45.
Analyst support remains bullish, with B. Riley raising its price target to $195 from $175 and reiterating a Buy rating. FactSet data shows a broader Buy consensus and a higher mean target near $234.11. Traders are closely watching MSTR as a way to ride the Bitcoin story.