Michael Saylor's Strategy (MSTR) Just Went Even Deeper into Bitcoin

The company snapped up another 6,911 BTC last week for around $584 million, according to a March 24 SEC filing. That brings its total stack to a jaw-dropping 506,137 Bitcoin — worth over $44 billion at current prices. By William S.

MicroStrategy (NASDAQ:MSTR) just went even deeper into Bitcoin. The company bought another 6,911 BTC last week for about $584 million, according to a March 24 SEC filing.

This brings Strategy's total Bitcoin holdings to an astounding 506,137 coins, valued at over $44 billion at current prices.

Strategy funded the latest Bitcoin purchase with proceeds from a recent stock sale. It sold nearly 2 million shares of common stock last week, raising $592.6 million.

This capital was swiftly allocated towards more Bitcoin, with each coin acquired at an average price of $84,529.

Saylor had alluded to an imminent Bitcoin buy just days earlier, following the pricing of Strategy's $711 million preferred stock offering.

To date, Strategy has plowed through roughly $33.7 billion to build its Bitcoin stack, at an average price of $66,608 for each coin.

Bitcoin's price rise also pushed up shares of Coinbase (NASDAQ:COIN) and Robinhood (NASDAQ:HOOD), which saw good gains in Monday’s premarket session.

However, traders may want to keep in mind that global tariff worries could still exert pressure on risk assets going forward.

What Happened

Shares of MicroStrategy (NASDAQ:MSTR) were up 4.8% in premarket trading Monday after the company disclosed a new Bitcoin purchase and analysts at Credit Suisse upgraded the stock.

Is MSTR Stock a Good Buy?

Analysts are optimistic about MSTR stock, with a Strong Buy consensus rating, according to the Smart Score of 4 of 5.

The thinking here is that institutions like hedge funds and pension funds are skilled at macroeconomic analysis and good at evaluating the long-term prospects of a company.

As such, they tend to be contrarian investors who will enter a stock when others are exiting and vice versa.

The implication is that when institutions are viewed as a group, they are a reliable predictor of future price direction.

In the case of MSTR, there are 11 Buys and 1 Hold recommendations in the past three months.

As of Monday's morning, MSTR stock is up 73.4% over the past year, compared to a 10.5% increase in the S&P 500 index over the same period.

Credit Suisse Upgrade

Credit Suisse upgraded MicroStrategy stock from Neutral to Outperform and raised the price target to $450 from $320.

The investment bank said that it expects the macro environment to become "less challenging" for Strategy in the second half of 2024.

It added that it now forecasts earnings to be higher than the Street's estimates for 2024 and 2025.

Its analysis suggests that the "implied market price" for Strategy's stock at the end of 2025 will be in the range of $400 to $450, which it said is an "attractive level."

MSTR Price Action

Shares of MicroStrategy (NASDAQ:MSTR) closed Friday's session at $320.00.