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MicroStrategy, now called Strategy, has been in the news again because its stock price looks like it is starting to recover. It bounced off its 200-day moving average (DMA), though it could not break resistance at its 50-day DMA. The bounce has come after a major announcement of the company's purchase of 3,459 more Bitcoin.
The company's Bitcoin position now stands at 531,644 Bitcoin, worth more than $45 billion. MicroStrategy's latest Bitcoin position cost $285.8 million, which was funded from the sale of nearly 960,000 shares of its Class A common stock.
The continued use of equity financing to accumulate Bitcoin reserves is indicative of Executive Chairman Michael Saylor's Strategy and also reinforces Bitcoin as the company's primary treasury asset.
This purchase comes right after a very large purchase of 6,911 BTC in late March for $584.1m which allowed the company to surpass the 500,000 BTC milestone. These aggressive buys happen to be taking place at a time of rising geopolitical uncertainty.
President Donald Trump's aggressive tariffs against China have upset global markets however Bitcoin seems to be holding steady trading around $84,861. With the underlying market still teetering on volatility, Strategy's bullish stance on Bitcoin appears poised to continue regardless, although the stock suffers from short-term technical pressure as it currently adds on support of key resistance ranges.
Analysts are keeping their eyes on this latest example of Bitcoin accumulation to see if this acts as fuel to continue to drive momentum beyond the 50-day moving average.
Analysts bullish on MicroStrategy
Wall Street analysts continue to remain bullish on MicroStrategy, with a potential 66.07% upside over the next 12 months, according to TipRanks. An average price target of $510.38 by 13 analysts came in with a high target of $650 and a low target of $175.
The growth in price targets signals increasing confidence in the company's aggressive Bitcoin strategy, even as it wrestles with market volatility and regulatory pressures. The stock price sits at $309.99, up by 10% in the last 24 hours.