MicroStrategy Buys More Bitcoin: What's Going On With The Stock?
Portfolio Pulse from Erica Kollmann
MicroStrategy Incorporated (NASDAQ:MSTR) has completed its offering of 0.875% convertible senior notes due 2031, raising $603.75 million. The company used $592.3 million of the proceeds to purchase approximately 9,245 bitcoins at an average price of $67,382 each. As of March 18, MicroStrategy holds about 214,246 bitcoins, acquired at an average price of $35,160 per bitcoin. The stock is trading lower amid a pullback in Bitcoin prices, with shares down 11.7% at $1,327.53. Predictions for MSTR's stock price in 2030 are challenging but based on a 5-year annualized performance of 58.63%, it could potentially trade at $12,850.88.
March 19, 2024 | 3:43 pm
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MicroStrategy's recent purchase of bitcoins and the completion of its convertible senior notes offering have influenced its stock price, which is currently down 11.7% amid a Bitcoin price pullback.
MicroStrategy's stock price is closely tied to the price of Bitcoin due to its significant holdings. The recent purchase of bitcoins using proceeds from its note offering, combined with a pullback in Bitcoin prices, has led to a decrease in MSTR's stock price. The company's aggressive investment in Bitcoin makes its stock price sensitive to changes in the cryptocurrency's value.
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IMPORTANCE 90
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