Strategy (MSTR) Acquires $556 Million in Bitcoin Amid Market Volatility

Strategy (MSTR) has purchased 6,556 Bitcoins for $555.8 million, marking its position as the largest corporate holder of BTC with a total of 538,200. The stock is up approximately 2%, as Bitcoin prices rose above $87,000 amidst market volatility. The performance of Bitcoin has shown a decline of 17.95% over the last three months, with limited Wall Street ratings on the cryptocurrency.

Strategy (MSTR), previously known as MicroStrategy, announced a significant acquisition of Bitcoin, purchasing 6,556 BTC for approximately $555.8 million between April 14 and 20. This acquisition was disclosed in a Form 8-K filed with the U.S. Securities and Exchange Commission (SEC) and was funded entirely with cash, at a price of about $84,785 per Bitcoin.

Following this announcement, MSTR shares increased by roughly 2%. Strategy has established itself as the largest corporate holder of Bitcoin globally, now owning a total of 538,200 Bitcoins, valued around $47 billion at current market prices. The company’s stock is seen as a proxy for Bitcoin, with its performance closely linked to Bitcoin price movements.

The recent purchase occurred as Bitcoin prices rose above $87,000, reflecting a more than 3% gain in the last 24 hours. This uptick comes amid global equity market volatility, as Bitcoin had previously hovered near the $80,000 mark, indicating renewed investor interest in cryptocurrencies despite turbulence in stock markets.

In evaluating Bitcoin as an investment, it’s notable that most Wall Street firms refrain from providing price targets or ratings on it. However, analysing its performance over the last three months shows a decline of 17.95%. This performance metric can provide insights into potential buying opportunities for investors.

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