BTC rally: MSTR stock jumps to record high following $2B Bitcoin purchase

MicroStrategy's stock reached a new all-time high after the company made a $2 billion Bitcoin purchase. As a result, MicroStrategy now owns 279,420 BTC, with unrealized gains of $11.4 billion due to recent BTC rally.

MicroStrategy (MSTR) surged 19%, reaching a record high of over $320 after U.S. markets opened on Monday, following the company’s announcement of a $2 billion Bitcoin acquisition, according to Yahoo Finance data.

MicroStrategy Boosts Bitcoin Holdings to $23B

The world’s largest corporate Bitcoin holder, MicroStrategy, purchased 27,200 BTC between October 31 and November 10, increasing its total holdings to 279,420 Bitcoin, valued at roughly $23 billion at current market prices.

With an average acquisition cost of about $42,800 per Bitcoin, MicroStrategy is sitting on unrealized gains of approximately $11.4 billion, thanks to Bitcoin's recent price surge.

MicroStrategy’s stock is closely tied to Bitcoin’s performance, which reached a new high of $84,000 on Monday, according to CoinGecko data.

Over the past five days, MicroStrategy’s shares have surged more than 40%, and around 400% over the last year. Bitcoin itself has seen a 124% gain year-to-date. This growth is part of a broader market rally spurred by Donald Trump’s reelection and recent interest rate cuts by the U.S. Federal Reserve.

MicroStrategy buys $2B in Bitcoin

Crypto investors are optimistic about Trump’s pro-crypto stance, with his proposals to make the U.S. the “crypto capital” and “Bitcoin superpower” of the world, alongside a national Bitcoin reserve and a presidential advisory council on crypto. These initiatives aim to legitimize the crypto market and clarify regulatory uncertainties, especially amid the SEC’s strict enforcement approach.

The "Saylor Tracker," a Bitcoin portfolio tracker named after Michael Saylor, the executive chairman of MicroStrategy, revealed on November 10 that the company's return on its Bitcoin investments had exceeded 100%. According to the tracker, MicroStrategy’s Bitcoin holdings had already surpassed $20.5 billion, even before accounting for their most recent Bitcoin purchase.

Data from BitcoinTreasuries indicates that MicroStrategy has acquired Bitcoin 42 times, at an average price of $39,292 per coin. The company remains the largest corporate holder of Bitcoin, ahead of Marathon Digital and Riot Platforms, which hold Bitcoin valued at approximately $2.1 billion and $840 million, respectively.

MicroStrategy's recent acquisition of 27,200 Bitcoin has already generated over $200 million in profit, as the coins were purchased at an average price of $74,463 each and have since appreciated by nearly $8,000 per coin.

The company's Bitcoin acquisition strategy involves raising capital by issuing shares, which is then used to buy more Bitcoin. This approach not only bolsters Bitcoin's price but also helps to drive up the value of MicroStrategy’s own stock. As of the time of writing, MSTR shares have risen more than 9% in pre-market trading, reaching $295.

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