MicroStrategy has seen its stock price surge after it revealed on November 12th, 2020 that it has acquired 38,250 bitcoins for $425 million. This caused shares of the business intelligence software provider to jump to a two-year high.
By increasing its Bitcoin holdings to a total of 71,064 BTC, the company has sent a clear message that its confidence in the digital currency is stronger than ever. The purchase, which was completed on the open market, was financed using cash available on its balance sheet.
Following the announcement, MicroStrategy’s stock price has jumped by more than 35%. The company now has a market capitalization of around $6.95 billion, which is more than double what it was a month ago.
Additionally, the company’s Bitcoin holdings are now worth roughly $2.2 billion. It has also been reported that MicroStrategy’s CEO Michael Saylor holds an additional 17,738 bitcoins.
As a result of this surge in price, analysts are becoming increasingly bullish on MicroStrategy. Some have even gone as far as saying that the stock could rally as much as 90% in a matter of months.
It will be interesting to see how this situation plays out in the months to come. The success of MicroStrategy’s Bitcoin wager is likely to be a big factor in determining the fate of other companies considering a similar move.