MicroStrategy Makes Move to Increase Bitcoin Holdings with $700M Convertible Debt Offering – TipRanks.com
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There are Bitcoin (BTC-USD) bulls, and then there is MicroStrategy (NASDAQ:MSTR). The analytics and business intelligence solutions provider seems to have made hoarding as much Bitcoin as possible its top priority in recent times.
The Michael Saylor-led company is offering convertible notes worth $700 million, planning to use the net proceeds from the effort to acquire additional Bitcoin (and for general corporate purposes). According to CoinDesk, MSTR holds nearly 193,000 BTC worth over $13 billion at a $67,500 price level. This hoard makes MSTR the largest corporate holder of BTC globally.
Bitcoin has rallied by nearly 196% over the past year. In comparison, MSTR’s stock price has skyrocketed by nearly 343% during this period. Oddly enough, this means holding MSTR would have worked out better for crypto enthusiasts rather than stocking up on BTC itself.
Is MSTR a Good Stock to Buy?
While the Street has a Strong Buy consensus rating on MSTR, an average price target of $875 for the stock indicates a potential downside of 16.7%. Still, the upcoming halving event could act as a potential price driver for both BTC and MSTR. Historically, the price of BTC has rallied following a halving. Consequently, investor sentiment in MSTR stock remains buoyant. Shares of the company are already up by nearly 7% in the early session today.
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