Strategy Shares Rise on $43 Million Purchase—Its Largest in Four Weeks

Core Insights - The company made its largest Bitcoin purchase in nearly a month, acquiring 390 Bitcoin for $43 million, bringing its total holdings to approximately 640,800 Bitcoin valued at $73.6 billion [1][2] - The recent purchase was funded through proceeds from the issuance of preferred shares, marking a shift in the company's capital-raising strategy [2][4] - The company's stock price rose by 1.9% to $294, although it has decreased by 4.8% over the past month [2] Company Strategy - The company has not issued common shares since late September, focusing instead on preferred shares to fund Bitcoin acquisitions [4][5] - Recent Bitcoin purchases have been relatively smaller, totaling 196, 219, and 390 Bitcoin, indicating a cautious approach [5] - The company has raised $128 million in cash, which it is using for dividend payments and further investments [4] Market Sentiment - Analysts from Citi view the company as a key indicator of Bitcoin's potential price movements, setting a price target of $485 per share [6] - The premium at which the company's stock trades relative to its Bitcoin holdings has decreased from 1.25x to 1.16x over the past month, suggesting changing market dynamics [7] - A majority of respondents in a recent survey believe Bitcoin will regain $120,000, contrasting with a bearish forecast of $100,000 [3]