MicroStrategy Outperforms Nasdaq Composite After $175 Million Bitcoin Purchase

Key Takeaways

  • MicroStrategy made its second Bitcoin purchase, pushing total non-cash holdings to over $425 million worth.
  • The company’s stocks soared more than 9.3% on the news.
  • Investor responses may indicate latent positive sentiment toward digital assets

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MicroStrategy (NASDAQ: MSTR) stocks rose over nine percent as their CEO revealed the company had purchased another $175 million in Bitcoin. The investment makes up part of the firm’s strategy to diversify the company’s cash holdings. 

MicroStrategy Turns to Bitcoin to Protect Value

MicroStrategy has made a large purchase of Bitcoin for the second time in two months.

Its first purchase was in August when it diverted around $250 million worth of cash holdings to assets like stocks, silver, gold, and Bitcoin. 

Now, with another $175 million Bitcoin purchase, the Delaware-based software company has demonstrated even more trust in Bitcoin as a store of value. The company’s Bitcoin holdings now stand at 38,250.

Public filings with the SEC indicate the company may exceed holdings in Bitcoin above $250 million.

SIMETRI gains of 1031%

Markets Respond Favorably

MicroStrategy’s move seemed to have pleased market participants, as the company’s stocks jumped over nine percent while the NASDAQ Composite (IXIC) sat at just over one percent gains.

Competitor IT services companies saw minor movements. Cognizant (NASDAQ: CTSH) was up around 1.2 percent, Citrix Systems (NASDAQ: CTXS) was up under one percent, and Infosys (NYSE: INFY) was up less one percent. 

MicroStrategy’s intention was capital preservation, with company CEO Michael J. Saylor saying of their first Bitcoin bet…

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