MicroStrategy Stock Jumps as Bitcoin Trades Near $100K

Investopedia
2024-11-25

KEY TAKEAWAYS

  • Shares in MicroStrategy, the largest corporate holder of Bitcoin, are jumping Monday in premarket trading, as the cryptocurrency trades near the $100,000 mark for the first time.
  • MicroStrategy ramped up acquisitions of the token this year—especially following Donald Trump’s November 5 election victory—as investors bet on a crypto-friendly administration and Congress. 
  • As of Nov. 17, MicroStrategy held 331,200 bitcoin.

Shares in MicroStrategy (MSTR), the largest corporate holder of Bitcoin (BTCUSD), are jumping Monday in premarket trading, as the cryptocurrency trades near the $100,000 mark for the first time.

After rising to around $99,800 on Friday afternoon, Bitcoin's price eased slightly in weekend trading and was trading at just above $98,000 Monday morning.

MicroStrategy, once primarily a business software provider, has been buying Bitcoin since August 2020. It ramped up acquisitions of the token this year—especially following Donald Trump’s November 5 election victory—as investors bet on a crypto-friendly administration and Congress. 

MicroStrategy Has Been Raising Funds to Buy Up Bitcoin

As of Nov. 17, MicroStrategy held 331,200 bitcoin, which the company said were acquired at an aggregate purchase price of about $16.5 billion and an average purchase price of around $49,874 per token, inclusive of fees.

That would be worth at least $32 billion at current prices. 

MicroStrategy has been tapping the capital markets with share sales and convertible bond deals to fund its purchases of Bitcoin.

MicroStrategy shares are trading up 5.4% in premarket trading, and have gained more than 500% this year. They have risen almost 90% since Nov. 5, when Trump won the U.S. election.

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