Key Insights:
- MicroStrategy stock (MSTR) gained 2.78% in pre-market trading on Monday, as bitcoin edged higher, climbing to about $112,000.
- This is after the firm announced the purchase of 196 BTC for $22.1 million, lifting its total holdings to 640,031 BTC.
- Bitcoin’s next targets stand at $160,000 to $170,000, as per the diminishing golden curves.
MicroStrategy stock (MSTR) gained 2.78% in pre-market trading on Monday, as bitcoin edged higher, climbing to about $112,000. Meanwhile, MicroStrategy announced a new purchase of 196 Bitcoin valued at $22.1 million.
MicroStrategy Stock (MSTR) Rose 2.78%
MicroStrategy stock (MSTR) jumped by 2.78% in pre-market trading on Monday following the latest purchase of over $22.1 million worth of Bitcoin.
MSTR has given back most of its year-to-date gains. The stock is up only 3% so far in 2024. Earlier in the year, shares climbed as high as $455. They are now trading just above $300.
MicroStrategy’s stock slipped below $300 last week as bitcoin fell to roughly $108,000. Since then, it has rebounded in sync with the cryptocurrency, closing the week near $309.
Michael Saylor’s MicroStrategy Adds 196 BTC Worth $22.1 Million
On Monday, MicroStrategy (MSTR) announced the purchase of 196 BTC for $22.1 million, lifting its total holdings to 640,031 BTC.
The company said the latest acquisition came at an average price of $113,048 per coin. With this addition, MicroStrategy’s overall average purchase price now stands at $73,983.
The latest MicroStrategy Bitcoin purchase was financed through two channels. First was by issuing common stock under its at-the-market program, and also raised funds by issuing perpetual preferred shares.
The firm’s executive chairman, Michael Saylor, signaled that the company intends to keep adding to its bitcoin holdings. He suggested that this strategy will continue even if it weighs on the stock.
To finance the latest purchase, MicroStrategy once again sold shares of MSTR, along with STRF and STRD. The sales brought in $116.4 million, $11.3 million, and $400,000, respectively.
Of that total, just $22 million was used to buy BTC.
Saylor hinted at the move a day earlier in his usual Sunday post on X. This time, he kept it brief, writing, “Always ₿e Stacking.”
The message suggested that MicroStrategy had added more bitcoin during the week and likely signaled plans to keep buying, regardless of market conditions.
This recent purchase marks MicroStrategy’s ninth straight week of adding bitcoin, even as both the cryptocurrency and the company’s stock have faced pressure.
Saylor and his team have pressed ahead with the strategy despite criticism. Detractors point out that the firm had previously suggested it would avoid selling common stock to fund new purchases at the current mNAV level.
The $22 million bitcoin purchase ranks among MicroStrategy’s smallest weekly acquisitions so far. The move reflects a steady slowdown, with the company’s recent buys shrinking in size over the past few months.
Even so, the executive chairman remains optimistic.
Just last week, he predicted that Bitcoin could begin climbing again toward the end of the year, following a stretch of pressure tied to growing institutional adoption.
Diminishing Golden Curves Signal $160,000 – $170,000 Bitcoin Price
After surpassing $112,000, Bitcoin’s next targets stand at $160,000 to $170,000, with a possible extension to $186,000, according to the diminishing golden curves model. Historical cycles show progressively lower peaks: +5 in 2013, +4 in 2017, and +3 in 2021, pointing to a likely +2 top in late 2025.
Each cycle eventually retests the median golden curve, reinforcing its role as long-term support. With the November 2024 halving expected to ignite the next rally, Bitcoin could enter six-figure territory before the cycle peaks.
While growth is slowing, the long-term trajectory remains strongly bullish, driven by Bitcoin’s predictable supply cycles.