MicroStrategy spends $5.4 billion to buy an additional 55,000 bitcoins, stock notes

MicroStrategy (MSTR) said Monday it bought another 55,000 bitcoins (BTC-USD) last week for $5.4 billion as the world’s largest cryptocurrency traded at all-time highs.

Shares of the company traded on either side of the flat line after the news, rising as much as 2% before falling more than 2% in early trade.

In a filing with the SEC, MicroStrategy said it spent $5.4 billion to acquire these bitcoins between November 18 and November 24, buying bitcoin at an average price of $97,862.

The company said it used the proceeds from convertible notes and stock sales to finance the purchase.

The application software company turned bitcoin proxy has been buying tokens since 2020.

In recent weeks, it has stepped up its buying as bitcoin surged to heights above $99,000 following Donald Trump’s presidential victory earlier this month.

The company’s previous weekly purchases included 51,780 bitcoins at an average price of just over $88,500 per token.

As of Sunday, MicroStrategy held approximately 386,700 bitcoins, acquired at a total purchase price of approximately $21.9 billion and an average purchase price of approximately $56,761 per bitcoin.

MicroStrategy stock has been on a wild run this year, up more than 515% year-to-date, although shares fell more than 15% last week after short-seller Citron Research said it was betting against the stock.

The short seller said in an X filing that while the firm remains bullish on bitcoin — and was bullish on MicroStrategy’s bitcoin play years ago — the company’s stock has “completely detached from BTC fundamentals.”

However, Wall Street analysts have been increasingly bullish on the stock given bitcoin’s run and where bulls say it could be headed.

Bitcoin has flirted with $100,000 since last Friday, hitting highs of more than $99,400.

Read more: Bitcoin clears another record: Is it a good time to invest?

Analysts at Bernstein raised their price target on the stock to $600 from $290, while Benchmark raised its target to a Street high of $640, up from $450.

In an interview on Yahoo Finance’s Opening Bid podcast, Benchmark’s Mark Palmer said: “We assume in our analysis of MicroStrategy that the price of bitcoin will reach $225,000 by the end of 2026.”

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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