Buy, buy, buy non-stop! MSTR further increased its holdings by 21,550 bitcoins
"Bitcoin holder" MSTR company purchased 21,550 bitcoins at an average price of $98,783 between December 2 and 8, with a total value of approximately $2.1 billion. This marks the company's fifth consecutive week of announcing bitcoin purchases. As of now, the total value of its held bitcoins has exceeded $41 billion
The "Bitcoin holding giant" MSTR has purchased approximately $2.1 billion worth of Bitcoin.
Specifically, according to a filing with the U.S. Securities and Exchange Commission (SEC) on Monday, December 9, Eastern Time, the company acquired 21,550 Bitcoins at an average price of $98,783 between December 2 and December 8, totaling approximately $2.1 billion. This marks the fifth consecutive Monday that MSTR has announced a Bitcoin purchase. As of now, the total value of the Bitcoin held by MSTR has exceeded $41 billion.
MSTR is a small enterprise software company, and its co-founder and chairman Michael Saylor previously realized that the company's traditional business model might not survive in today's competitive market. Therefore, he decided to seek new growth avenues by purchasing Bitcoin and other crypto assets. To support this aggressive strategic transformation, MSTR announced an ambitious financing plan last October to raise $42 billion over the next three years through a targeted issuance of stocks and convertible bonds to purchase more Bitcoin.
MSTR's bet seems to be paying off. This year, the company's stock price has risen over 500%, attracting significant attention from investors. At the same time, hedge funds have begun to purchase MSTR-issued bonds in large quantities for arbitrage trading. MSTR has become one of the most volatile stocks in the U.S. stock market this year.
However, MSTR's strategy also faces significant risks. Analysts point out that if the cryptocurrency market experiences a substantial correction, the company's highly leveraged investments could lead to severe losses for shareholders. Despite Bitcoin having risen over 130% since last December, this rapid growth conceals enormous market risks, and its highly volatile nature remains a concern