MicroStrategy Stock Jumps 31% as Bitcoin Nears $100K Mark

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Bitcoin surged past $97,000 on November 21, hitting a new all-time high of $97,628, fueled by expectations of a more crypto-friendly US regulatory environment under President-elect Donald Trump. The cryptocurrency’s price rose by 5.7%, bringing its market cap to $1.93 trillion. Bitcoin has more than doubled in price this year, and the broader crypto market has gained around $900 billion since Trump’s election, with pro-crypto lawmakers taking office. The next target for Bitcoin is the $100,000 mark. 

At present the market looks bright let’s dive in to know who’s gaining high with the BTC pump. 

MicroStrategy’s Bold Moves Pay Off Big!

In association with Bitcoin’s whopping rise, BTIG has significantly raised its price target for MicroStrategy (MSTR) from $290 to $570, highlighting the company’s strong execution of its ambitious “21/21 Plan.” This plan, introduced on October 31, aims to raise $42 billion to acquire more Bitcoin. So far, MicroStrategy has successfully raised $6.6 billion through equity offerings, which has allowed it to purchase 78,980 additional bitcoins. As a result, the company’s total Bitcoin holdings have grown to 331,200, solidifying its position as the largest corporate holder of Bitcoin.

Investor Confidence Soars, Stock Takes Off!

MicroStrategy’s aggressive Bitcoin acquisition strategy has not only increased its Bitcoin reserves but also boosted its Bitcoin-per-share ratio by 20.4% from October 31 to November 17. The company raised $2.6 billion through a convertible debt offering, using the funds to acquire more Bitcoin. The offering, with a 0% coupon and a 55% conversion premium, is designed to take advantage of market volatility to acquire Bitcoin at favorable terms.

Despite a drop in software revenues due to its transition to cloud services, MicroStrategy has seen strong investor confidence. Its stock has risen by 31.11% over the past week and an impressive 746.64% over the last year. Benchmark also raised its target for MicroStrategy’s stock, from $300 to $450, citing its strategic use of Bitcoin as a treasury reserve asset as a key reason for the positive outlook.

However, there are risks. MicroStrategy is not currently profitable and is trading at a high revenue valuation multiple. Its focus remains on long-term growth rather than short-term profitability. The company’s bold moves have attracted investor confidence but also present challenges due to the volatility of the crypto market.

Bitcoin Market Heat Up: ETF Inflows Fuel the Rally

Bitcoin has hit a new all-time high of $97,862.64, before slightly retracing to $97,527.03 at press time. Its intraday trading volume surged 15.20% to $86.73 billion, showing increased market activity. Bitcoin’s dominance stands strong at 60.55%, solidifying its market position. ETF inflows, particularly BlackRock’s IBIT, which saw $627.7 million of the total $750 million in ETF inflows on Wednesday, have further fueled the rally.