$MicroStrategy (MSTR.US)$ The company disclosed that from November 18 to 24, 2024, it purchased approximately 55,500 bitcoins at a cost of about 5.4 billion USD. This action increased its bitcoin holdings by approximately 17%.

As a software company, MicroStrategy has long been regarded by the market as synonymous with bitcoin investments due to its large bitcoin reserves on its balance sheet. It is reported that the average purchase price for the newly added bitcoins was $97,862, and despite bitcoin prices nearing the high point of nearly $0.1 million, MicroStrategy continues to increase its holdings of this digital asset.

As of November 24, 2024, MicroStrategy held approximately 0.3867 million bitcoins, totaling about $21.9 billion, with an average purchase price of $56,761 per coin.

This large-scale purchase was made possible by several recent capital-raising activities by MicroStrategy: the company raised net proceeds of approximately $2.97 billion by issuing 0% convertible senior notes due in 2029; at the same time, through the 'at-the-market offering agreement,' the company sold 5,597,849 shares of stock, generating net proceeds of about $2.46 billion. As of November 24, 2024, the company still has approximately $12.8 billion in shares available for issuance and sale.

These financing actions have led to Wall Street analysts raising their price targets for MicroStrategy's stocks: Canaccord Genuity raised the target price from $300 to $510; Bernstein raised the target price from $290 to $600; Benchmark increased the target price from $450 to $650.

Bernstein analyst Gautam Chhugani predicts that over the next decade, MicroStrategy's bitcoin holdings will account for 4% of the global bitcoin supply, a significant increase from the current approximately 1.7%. In a report to clients, he stated: 'MicroStrategy's bitcoin asset model is unprecedented on Wall Street. The company is on an unwavering path to attract global capital and invest in bitcoin.'

Canaccord analyst Joseph Vafi suggests evaluating the value of microstrategy from the perspective of 'Sum-of-the-Parts Valuation' rather than traditional profit and loss indicators. He points out that a key indicator to measure the company's bitcoin yield is the 'bitcoin per share', which has increased by 41.8% year-on-year as of November 17, 2024. Vafi states: "The fact that the per share bitcoin quantity is close to doubling is already attractive; when this growth is combined with the simultaneous increase in the spot price of bitcoin, the resulting per share dollar-denominated returns are quite substantial, even though these returns are not reflected on the income statement."

Benchmark analyst Mark Palmer adds: "When evaluating the equity value of MicroStrategy, we believe that the value created by the company's asset-liability management over the long term should be included in its comprehensive stock price analysis, just as the value created by other companies through the production of goods and services."

Editor/Jeffy