MicroStrategy (MSTR) Stock: A Compelling Alternative to Buying Bitcoin (BTC) Directly

Strategy (MSTR), led by Michael Saylor, just made another bold move into Bitcoin, purchasing 20,356 BTC for $1.99 billion at an average price of $97,514 per coin

Bitcoin bull MicroStrategy (NASDAQ:MSTR) just disclosed another large purchase of the flagship cryptocurrency, buying 20,356 BTC for $1.99 billion at an average price of $97,514 per coin, as announced by the company on Monday.

This latest purchase brings the company’s total Bitcoin holdings to 499,096 BTC, moving it closer to the half-million mark.

MSTR uses convertible notes to fuel the massive purchase

To fund the purchase, MicroStrategy raised $2 billion through a 0% convertible note offering last week, as reported by us earlier. This offering allows the company to secure capital without immediate dilution of shares, a move that aligns with Saylor’s long-term Bitcoin strategy.

MicroStrategy now holds Bitcoin valued at $47.7 billion at current prices, with an average purchase price of $66,357 per BTC. Despite a recent stock dip below $300, MSTR shares edged up slightly in premarket trading. This indicates investor confidence in the company’s aggressive Bitcoin strategy.

Is MSTR stock a good buy?

For investors that are bullish on Bitcoin and want to gain exposure to the cryptocurrency, buying MicroStrategy stock is a compelling way to do so.

According to Wall Street analysts, MSTR stock is a Strong Buy, with an average price target of $548.91, implying an upside potential of 83.2% from current levels. Out of 11 analysts, all recommend buying the stock.

In the past year, MSTR has risen by more than 275%. At the time of writing, the stock trades at $299 per share and has a market capitalization of $122 billion.