As a seasoned analyst with over two decades of experience in the financial markets, I find myself both intrigued and impressed by the recent moves of MicroStrategy and Semler Scientific in the world of Bitcoin.
Here’s the breakdown:
- MicroStrategy paid an average of $97,862 per bitcoin in this latest purchase.
- Since adopting its bitcoin strategy in 2020, the company has acquired its holdings for a cumulative $21.9 billion at an average price of $56,761 per BTC.
- As of publication, BTC is trading around $97,500.
- Saylor’s big buy-up failed to push BTC to $100K
This aggressive acquisition comes alongside other milestones for the company:
- MicroStrategy recently broke into the top 100 U.S. publicly traded companies by market cap, briefly surpassing $100 billion in valuation.
- The Nasdaq 100 Index, set to announce its annual rebalancing results on Dec. 13, may soon include MicroStrategy.
The transaction is taking place after MicroStrategy successfully wrapped up the sale of their $3 billion convertible debt, which occurred last week. This debt matures in 2029, features a zero-percent coupon, and has a conversion premium of 55%, equivalent to a share price of around $672.40. Before the market opened, MSTR shares were showing a 3.3% increase, trading at approximately $436.
Semler Scientific Joins the BTC Bandwagon
Though MicroStrategy has been leading the Bitcoin accumulation story, Semler Scientific (SMLR) has also bolstered its Bitcoin holdings by purchasing an extra 297 tokens. This now totals their Bitcoin stash at 1,570 coins. Simultaneously, they’ve broadened their at-the-market offering, increasing it to a maximum of $100 million.
Broker Optimism: A Bullish Outlook on MicroStrategy
MicroStrategy’s bitcoin-centric strategy continues to draw enthusiasm from analysts.
- Bernstein raised its price target for MSTR shares to $600 from $290, reiterating an “outperform” rating.
- Canaccord followed suit, upping its target to $510 from $300 and maintaining a “buy” rating.
Bernstein analysts anticipate that MicroStrategy could possess approximately 4% of the global bitcoin holdings by the year 2033, which is a significant increase from its current 1.7%. The firm believes that this expansion is likely due to a persistent bull market for Bitcoin, fueled by increased institutional investment, favorable economic conditions worldwide, and potential regulatory backing in the United States.
Analysts at Canaccord Genuity pointed out that conventional profit measures are not relevant for MicroStrategy anymore due to its shift towards a Bitcoin-focused business model. They instead focus on “increase in dollar value of Bitcoin per share” as the main measurement for evaluating the company’s worth.
By means of its active acquisition strategy, creative funding methods, and undeniable dedication to Bitcoin, MicroStrategy is making a strong mark in the cryptocurrency sector. The upcoming events, such as potential entry into the Nasdaq 100 Index in December, could serve to bolster its reputation as the primary destination for global capital seeking bitcoin investments.
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2024-11-26 12:14