MicroStrategy Stock Jumps 31% as Bitcoin Nears $100K Target

On November 21, Bitcoin broke through the $97,000 mark, reaching a new all-time high of $97,628. This rise is mainly driven by growing optimism about a more crypto-friendly regulatory environment under President-elect Donald Trump. The cryptocurrency’s price jumped by 5.7%, bringing its market cap to $1.93 trillion. Bitcoin has more than doubled in value this year, and the broader crypto market has added about $900 billion since Trump’s election, thanks to the election of pro-crypto lawmakers. The next big target for Bitcoin could be the $100,000 mark.

But what’s behind this surge, and who is benefiting the most? Let’s dive in.

MicroStrategy’s Big Bitcoin Bet Pays Off

One of the biggest winners from Bitcoin’s rise is MicroStrategy. The company has raised its price target from $290 to $570, with BTIG pointing to its successful execution of the ambitious “21/21 Plan.” Launched on October 31, the plan aims to raise $42 billion to acquire more Bitcoin.

So far, MicroStrategy has raised $6.6 billion through equity offerings, which has allowed it to purchase an additional 78,980 bitcoins. This brings its total Bitcoin holdings to 331,200, making it the largest corporate holder of Bitcoin.

MicroStrategy’s Bitcoin Strategy – How It’s Going

MicroStrategy’s aggressive Bitcoin strategy has paid off in several ways. Not only has the company greatly increased its Bitcoin holdings, but its Bitcoin-per-share ratio has also risen by 20.4% from October 31 to November 17. Additionally, the company raised $2.6 billion through a convertible debt offering, using the funds to buy more Bitcoin.

This offering, with a 0% coupon and a 55% conversion premium, is designed to take advantage of market fluctuations to acquire Bitcoin at favorable prices.

Despite a drop in software revenues from its shift to cloud services, investor confidence in MicroStrategy remains strong. Its stock has risen by 31.11% in the past week and an impressive 746.64% in the past year. Benchmark also raised its stock target from $300 to $450, noting that the company’s use of Bitcoin as a treasury reserve asset is a key factor in its positive outlook.

It’s Not Going to Be Easy!

However, there are risks involved. MicroStrategy is still unprofitable and is trading at a high revenue valuation multiple. The company is focused on long-term growth rather than short-term profitability, which has drawn both support and criticism.

The volatility of the cryptocurrency market remains a major risk, and while the company’s moves could lead to big rewards, they could also result in significant setbacks.

Bitcoin’s Rally: Market Activity Soars

Bitcoin reached a new all-time high of $97,862.64, though it slightly retraced to $97,527.03 at press time. Its intraday trading volume increased by 15.20% to $86.73 billion, showing strong market activity. Bitcoin’s dominance remains solid at 60.55%, further strengthening its position in the market.

ETF inflows, particularly from BlackRock’s IBIT, which saw $627.7 million of the total $750 million in ETF inflows on Wednesday, have also helped fuel this rally.

With Bitcoin’s dominance growing and corporate giants like MicroStrategy doubling down, the crypto world is poised for an even more exciting ride ahead.