MicroStrategy, the business intelligence software company led by Michael Saylor, continues to make bold moves in the cryptocurrency space. On Monday, the company announced its latest Bitcoin purchase of 55,000 bitcoins for a staggering $5.4 billion. This significant investment comes as Bitcoin hit all-time highs, trading above $99,000. MicroStrategy revealed in a filing with the SEC that it bought the Bitcoin at an average price of $97,862 between Nov. 18 and Nov. 24, utilizing funds from convertible notes and share sales for the acquisition.
This latest purchase adds to MicroStrategy's already substantial Bitcoin holdings, bringing its total to approximately 386,700 bitcoins. The company now holds an impressive $38 billion worth of Bitcoin, acquired for an aggregate purchase price of about $21.9 billion. Their average purchase price per bitcoin stands at approximately $56,761. This move solidifies MicroStrategy's position as the largest corporate holder of Bitcoin in the world.
Despite the bullish sentiment surrounding MicroStrategy's Bitcoin strategy, the company's stock experienced a slight downturn, with shares closing the session down 4% following the news. This dip came after a phenomenal run for MicroStrategy's stock, which had surged more than 515% year-to-date. However, shares fell over 15% last week after controversial short seller Citron Research raised concerns about the disconnect between MicroStrategy's stock price and Bitcoin fundamentals.
While some critics question the correlation between MicroStrategy's stock performance and its Bitcoin investments, Wall Street analysts remain optimistic. With Bitcoin's price flirting with the $100,000 mark, analysts at Bernstein and Benchmark have raised their price targets for MicroStrategy stock significantly. Bernstein raised its target to $600 from $290, while Benchmark set its target at a Street high of $640, up from $450. In an interview, Benchmark's Mark Palmer shared his bullish outlook, projecting a Bitcoin price of $225,000 by the end of 2026 in their analysis of MicroStrategy.
MicroStrategy isn't the only company making big moves in the Bitcoin space. Semler Scientific also announced a substantial increase in its Bitcoin holdings, acquiring 297 BTC at an average price of $97,995 each. This move bolstered Semler's total Bitcoin holdings to 1,570 BTC, acquired at a cumulative cost of $117.8 million. The company reported an impressive Bitcoin yield of 58.4% from July 1 to Nov. 22, marking a significant increase from the previous quarter.
Overall, the race among corporations to accumulate Bitcoin continues to intensify, with MicroStrategy and Semler Scientific leading the way with their substantial investments. As the crypto market remains volatile and Bitcoin approaches new milestones, the strategic decisions made by these companies could have long-term implications for both the cryptocurrency market and traditional investors.