MicroStrategy Shares Are Surging Monday: What’s Going On?
By Benzinga
MicroStrategy Incorporated (NASDAQ:MSTR) shares are trading higher Monday after the company acquired 51,780 additional Bitcoin (CRYPTO: BTC). Here’s what you need to know.
What To Know: MicroStrategy announced in a new SEC filing that it purchased approximately 51,780 Bitcoins for approximately $4.6 billion in cash between Nov. 11 and Nov. 17. The purchases, made at an average price of $88,627, were funded through proceeds from the issuance and sale of shares under the company’s Sales Agreement entered into on Oct. 30.
MicroStrategy and its subsidiaries now hold 331,200 Bitcoins, acquired for a total purchase price of about $16.5 billion, or $49,874 per Bitcoin. Based on Monday’s bitcoin prices, MicroStrategy now has more than $24 billion in Bitcoin holdings and $11.7 billion in unrealized profits.
MicroStrategy said it sold an aggregate of 13,593,865 shares under the Sales Agreement between Nov. 11 and Nov. 17. The company had approximately $15.3 billion worth of shares remaining for issuance and sales under the Sales Agreement as of Nov. 17.
MicroStrategy continues to view Bitcoin as a strategic reserve asset, providing exposure to digital assets as an alternative to traditional money. Michael Saylor, the company’s co-founder and executive chairman, has emphasized the value of Bitcoin in improving balance sheets and stockholder returns.
Bitcoin was up about 0.5% over a 24-hour period, trading around $90,600 at the time of writing, per Benzinga Pro. It’s up more than 6% over the past week, driven by several factors, the most important of which appears to be Donald Trump’s election victory.
Trump has positioned himself as pro-crypto and many expect softer crypto regulations amid Trump’s return to the White House. Bitcoin and broader crypto markets also surged last week as Bitcoin ETFS saw record net inflows of $1.114 billion. Many expect Bitcoin to cross above the $100,000 level by the end of the year.
Price Action: MicroStrategy shares were up 8.96% at $371.37 at the time of writing, according to Benzinga Pro.
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