Price Analysis

MicroStrategy Pushes Forward with Bitcoin Strategy Despite Market Crash

Since 2020, MicroStrategy has purchased Bitcoin for its treasury and holds 214,400 BTC. At the current Bitcoin price of $57,861, these holdings are worth approximately $12.41 billion.

Despite the company’s aggressive Bitcoin acquisition strategy, MicroStrategy’s stock price dipped by 6.95% last week, closing at $1,281.72. This marks a 27.86% drop over the past six weeks. 

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The downfall correlates with the broader market correction in the crypto world, as the BTC price crashed 10.92% last week. With an intense correction in the altcoins market, the FUD phase dominates the crypto market. 

However, the stock has sustained above the crucial $1,200 level and has shown a year-to-date growth of 87.07% in 2024.

MicroStrategy Expands Convertible Note Offering 

MicroStrategy, the largest corporate holder of Bitcoin, has raised its latest convertible note offering by $200 million from the original $500 million plan, totaling $700 million. The company also provided initial buyers an option to purchase an additional $100 million of the notes. The notes are priced to offer a 2.25% annual yield. Broker Bernstein set a $2,890 price target for MicroStrategy’s shares.

Similarly, Japanese company Metaplanet has purchased an additional 42 Bitcoin worth $2.4 million, bringing its total holdings to 203 BTC, valued at about $11 million. Despite Bitcoin’s recent dip under $56,000, Metaplanet’s stock price has risen, reflecting investor confidence in its Bitcoin acquisition strategy. 

Metaplanet now holds 203.73 BTC, worth approximately $15.56 million, making it Japan’s biggest corporate holder of the digital currency. Metaplanet is adopting Bitcoin as a hedge against inflation and the weak yen. Thus, this demonstrates the growing trend of corporate investment in digital assets.

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