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MicroStrategy stock jumps as company buys an additional 14,620 BTC

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on Dec 27, 2023
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  • MicroStrategy announced it acquired an additional 14,620 bitcoins for $615.7 million.
  • As of December 26, the company held a total of 189,150 BTC purchased for approsimately $5.9 billion.
  • The MSTR stock rose after the news, bringing year-to-date gains above 328%; Bitcoin price also rose.

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MicroStrategy (NASDAQ: MSTR) has acquired an additional 14,620 bitcoins for $615.7 million, the company’s founder and Chairman Michael Saylor has announced. The new purchase was scooped at the average price of $42,110.

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The news has coincided with yet another uptick in the price of its stock MSTR, which rose slightly premarket before quickly jumping more than 3% just after markets opened on Wednesday.

MSTR stock surges as MicroStrategy buys more Bitcoin

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As of December 26, 2023, MicroStrategy’s bitcoin holdings had reached a total of 189,150 BTC. The company’s total BTC acquisition now stands at a cost of approximately $5.9 billion, with the haul purchased at an average price of $31,168 per BTC.

At current BTC price of $43k, MicroStrategy’s Bitcoin bet is worth a staggering $8.1 billion. This means the company is sitting on a potential $2.1 billion profit. The company fist bought Bitcoin in August 2020.

The two most recent purchases before today’s announcement was the 5,445 bitcoins worth over $147 million in September, and the 16,130 BTC bought for over $593 million announced in November.

Amid the anticipation for more gains for Bitcoin has been the steady surge in the MSTR stock price. In 2023, the company’s shares have seen their value soar by more than 328%. That has outpaced Bitcoin’s roughly 160% upside.

Notably, MSTR has also outperformed some of the top stocks in the tech industry, including Nvidia’s 245% rally year-to-date and Meta Platform’s 187% YTD gains.

MSTR was trading at $624 around 9.56 am ET on December 27, 2023.

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