MicroStrategy purchases an additional 55,000 bitcoins for $5.4 billion.
As the largest cryptocurrency in the world was trading at all-time highs, MicroStrategy (MSTR) said on Monday that it had paid $5.4 billion for an additional 55,000 bitcoins (BTC-USD) last week.
By 10:45 a.m. ET, the company’s shares had recovered from a decline of nearly 8% and were trading on both sides of the flat line after the news.
According to a filing with the SEC, MicroStrategy purchased these bitcoins between November 18 and November 24 for an average price of $97,862, spending $5.4 billion in the process.
Since 2020, the application software company—which is now a bitcoin proxy—has been purchasing tokens.
Since Donald Trump won the presidency earlier this month, bitcoin has surged to highs around $99,000, and it has increased its acquisitions in recent weeks.
51,780 bitcoins, at an average price of slightly over $88,500 per token, were part of the company’s previous weekly buy.
About 386,700 bitcoins were in MicroStrategy’s possession as of Sunday; they were purchased for a total estimated purchase price of $21.9 billion, with an average buying price of roughly $56,761 per bitcoin.
Although shares of MicroStrategy dropped more than 15% this week after short seller Citron Research declared they were betting against the stock, the company has been on a wild ride this year, up more than 515% so far.
In an X post, the short seller said that although the business is still optimistic about bitcoin and was optimistic about MicroStrategy’s bitcoin bet years ago, the stock of the company has “completely detached from BTC fundamentals.”
However, given bitcoin’s surge and the potential direction that bulls believe it may go, Wall Street analysts have become more optimistic about the stock.
Since last Friday, Bitcoin has flirted with $100,000, hitting highs of almost $99,400.
While Benchmark increased its price target to a street high of $640 from $450, Bernstein analysts increased theirs to $600 from $290.
Mark Palmer of Benchmark stated in an interview with Yahoo Finance’s Opening Bid podcast, “We assume in our analysis of MicroStrategy, that the price of bitcoin will reach $225,000 by the end of 2026.”