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Barchart
Pathikrit Bose

MicroStrategy Just Exponentially Increased Its Bitcoin Purchases. What Does That Mean for MSTR Stock?

Bitcoin (BTCUSD) treasury and analytics company Strategy (MSTR) (formerly MicroStrategy) is making full use of the crypto winter in recent times. After pouring in more than a hundred million dollars last week, the world's largest Bitcoin treasury company added 13,627 tokens of the world's largest cryptocurrency for $1.25 billion. The average purchase price per share was $91,519 per token. With this latest purchase, Strategy now holds 687,410 coins for an average price of $75,353 per token for a total consideration of $51.8 billion.

Strategy's additions smack of an opportunistic move on the part of the company after Bitcoin has remained flat in the past year. Compared to other risk-off assets (since Bitcoin is considered digital gold), such as gold (+71.91%), silver (+193.07%), and copper (+37.83%), the underperformance could not have been starker. This came about even though perceived tailwinds such as rising geopolitical tensions, de-dollarization efforts around the world, and global central banks' shift from the dollar as a haven became stronger trends over the last years.

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