MicroStrategy Buys More Bitcoin: What's Going On With The Stock?
Benzinga
Published Mar 19, 2024 15:43
Updated Mar 19, 2024 17:10
MicroStrategy Buys More Bitcoin: What's Going On With The Stock?
Benzinga - MicroStrategy Incorporated (NASDAQ:MSTR) shares are trading lower Tuesday amid a pullback in the price of Bitcoin. The company announced the completion of its previously announced offering and the purchase of additional bitcoins.
What To Know:
MicroStrategy announced it has completed its previously announced offering of 0.875% convertible senior notes due 2031. The aggregate principal amount of the notes sold in the offering was $603.75 million.
The company also announced that, during the period between March 11 and March 18, it acquired approximately 9,245 additional bitcoins, using $592.3 million of proceeds from the offering, for approximately $623 million in cash, at an average price of approximately $67,382 per bitcoin.
As of March 18, the company holds approximately 214,246 bitcoins, acquired at an aggregate purchase price of approximately $7.53 billion and an average purchase price of approximately $35,160 per bitcoin.
Bitcoin has pulled back in recent days and is trading at $62,702.66 at the time of publication.
Related News: Reddit Poised To ‘Pop’ On IPO As Wall Street Eyes ‘Prettiest Girl At The Dance’
MSTR Stock Forecast in 2030:/h2 Predicting the future in stock prices over long periods of time is challenging. Wall Street analysts use complex models that take into account interest rates, economic growth, competitive advantages, management teams and historical profitability, among a host of other factors.
If, as an investor, you want to assume most of the major factors remain stable, you can use trend analysis as a helpful tool. Using a longer term trend line or historical performance of the stock, you can aim to forecast a stock's annual rate of return.
For MicroStrategy (NASDAQ:MSTR), over the past 5 years, it's annualized stock performance is 58.63%, and if you assume that trend continues for another 5 years, you can expect a stock to trade at $12,850.88.
Using a trend line (see how to perform this function here), If you choose to use a trend line, connect your two points and look into the future to the point in time in which you're curious. Once you've identified that stock price, you may want to consider what type of conditions would need to exist for the stock to justify the share price – be it an outside influence or managerial decision making.
MSTR Price Action: According to Benzinga Pro, MicroStrategy shares are down 11.7% at $1,327.53 at the time of publication.
Image from Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Get The App
Read the original article on Benzinga
Written By: Benzinga
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.