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MicroStrategy Solidifies Leadership Among Investors Through Bitcoin

Sep 27, 2024
  1. MicroStrategy Market Advantages
  2. Bitcoin Price Gains with Rising Institutional Demand
  3. MicroStrategy Thrives

Amid Wall Street investors' mainstream adoption of Bitcoin (BTC), MicroStrategy Inc. (NASDAQ: MSTR) stands out among its peers. The firm, which provides enterprise analytics software, actively acquires bitcoins through the sale of its shares to institutional investors.

MicroStrategy Market Advantages

The firm recently completed a $1.01 billion convertible senior offering due in 2028 to purchase more bitcoins. As a result, MicroStrategy acquired 7,420 bitcoins worth $458 million at an average price of about $61k, thus holding a total of about 252,220 bitcoins.

Bitcoin Price Gains with Rising Institutional Demand

With significant scarcity and mainstream interest from institutional investors, Bitcoin's price has benefited significantly in recent years. The flagship coin has gained over 55 percent year to date despite lagging behind gold’s performance, which has registered about 29 percent in the same period. Notably, US spot Bitcoin ETFs saw record cash inflows on Thursday, totaling about $365 million led by BlackRock’s IBIT, Fidelity’s FBTC, and ARK 21Shares Bitcoin ETF (ARKB).

MicroStrategy Thrives

Since adopting the Bitcoin strategy, MSTR shares have moved in tandem with BTC price action. Remarkably, the company has outshined most Wall Street companies, including all S&P 500 components. As of this report, MicroStrategy's market cap stood at about $30.7 billion with 183 million shares outstanding. From a technical standpoint, MSTR continues to have a bullish outlook and is poised to print a new all-time high after two decades of consolidation.

MicroStrategy’s active acquisition of bitcoins has proven beneficial, allowing the company to successfully compete in the market and attract significant institutional investor attention.

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