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Michael Saylor's MicroStrategy is in the news again, with its shares trading at a 25-year high. Recent data from TradingView shows that MicroStrategy (MSTR) reached $235.89 in Thursday's session. The stock price rose more than 7% on October 25. MicroStrategy's price action last Thursday continued its 6-week rally and came ahead of its scheduled Q3 earnings report.
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This week's stock performance reflected the company's steady growth over the past few years. MicroStrategy has outperformed most of its peers in the S&P 500 index and has even outpaced Microsoft's growth since 1999. According to observers, MicroStrategy is bullish, with market analysts indicating $245 as the stock's next target.
MicroStrategy continues its focus on bitcoin
MicroStrategy, a Virginia-based bitcoin development company, is currently the largest corporate bitcoin holder in the world, with 252,222 btc. At bitcoin's current price of $67,392, the company has more than $17 billion in assets.
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MicroStrategy Stock Hits New Highs
MicroStrategy (MSTR) shares have soared more than 7% to a 25-year high of $236, with a current market cap of $47 billion, surpassing Microsoft in all-time stock market gains.
Since adopting bitcoin as a treasury asset in 2020, MicroStrategy stock has risen… pic.twitter.com/cyXS0KODCD
– The wolf of all the streets (@scottmelker) twitter.com/scottmelker/status/1849832478023811311?ref_src=twsrc%5Etfw” rel=”nofollow”>October 25, 2024
The company initially developed software to analyze external and internal data to aid decision making, with IBM Cognos, Oracle Corporation's BI platform, and SAP AG business objects as its main competitors. However, in August 2020, the company changed its business model to focus on bitcoin. The company has raised $4.25 billion from its stock offerings, the foundation for growing its bitcoin holdings.
MicroStrategy's bitcoin plan also has its costs
As part of your bitcoin plan, your goal is to buy btc at every opportunity. Overall, Saylor's strategy was a success. However, the business plan to focus on bitcoin came at a cost, and Saylor earned some detractors and critics along the way.
For example, the company has expanded its convertible note offering to raise funds to purchase more bitcoin. However, most of these bonds do not mature until 2032. Some market observers also say that MicroStrategy is in a difficult situation, especially during market crises. Since the company depends on bitcoin, the future of the company depends on the extreme volatility of cryptocurrencies. Although most of the criticism is valid, Michael Saylor remains defiant and has since doubled his btc investments.
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Hey twitter.com/satyanadella?ref_src=twsrc%5Etfw” rel=”nofollow”>@SatyaNadella
—Michael Saylor (@saylor) twitter.com/saylor/status/1849790766945587241?ref_src=twsrc%5Etfw” rel=”nofollow”>October 25, 2024
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MicroStrategy's next target is $245
Market watchers are now optimistic about Saylor's company. According to Mark Palmer, the company's shares have returned 17.8% since it began its bitcoin strategy. Palmer and the other analysts are now targeting $245 to address this surge and bullish sentiment. Palmer adds that the company's share price has risen 1,600% over the past four years and further gains are possible.
It also helps that Michael Saylor has remained steadfast in his vision and passion for bitcoin. In a recent post on twitter/x, MicroStrategy's CEO hinted at the company's next move and made a proposal to Microsoft's Satya Nadella.
Featured image of Dall.E, TradingView chart
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