Bitcoin surpassed $97,000 on November 21, hitting an all-time high of $97,628, driven by expectations of a cryptocurrency-friendly U.S. regulatory environment under President-elect Donald Trump. The price of the cryptocurrency rose 5.7%, bringing its market capitalization to $1.93 trillion. The price of Bitcoin has more than doubled this year, and the broader cryptocurrency market has raked in around $900 billion as crypto-supporting lawmakers took office following Trump’s election. Bitcoin’s next target is $100,000.
The market looks bright right now. Let’s find out who is earning high profits with BTC pumps.
MicroStrategy’s bold move has paid off big time!
In response to Bitcoin’s massive rise, BTIG significantly raised its price target on MicroStrategy (MSTR) from $290 to $570, highlighting the company’s strong execution of its ambitious “21/21 Plan.” The plan, introduced on October 31, aims to raise $42 billion to acquire more Bitcoin. To date, MicroStrategy has successfully raised $6.6 billion through an initial public offering, which enabled it to purchase an additional 78,980 Bitcoins. As a result, the company’s total Bitcoin holdings increased to 331,200, solidifying its position as the largest corporate holder of Bitcoin.
Investor confidence soars, stock prices rise!
MicroStrategy’s aggressive Bitcoin acquisition strategy not only increased its Bitcoin holdings, but also increased its Bitcoin per share ratio by 20.4% from October 31 to November 17. The company raised $2.6 billion through a convertible bond offering and used the funds to acquire more Bitcoin. . Offering a 0% coupon and a 55% conversion premium, this offer is designed to take advantage of market volatility to acquire Bitcoin on favorable terms.
Despite a decline in software revenue due to the shift to cloud services, MicroStrategy has earned strong investor confidence. The stock is up 31.11% over the past week and a whopping 746.64% over the past year. The benchmark also raised its stock target for MicroStrategy from $300 to $450, citing its strategic use of Bitcoin as a treasury reserve asset as a key reason for its positive outlook.
But there are risks. MicroStrategy is currently unprofitable and trading at a high earnings valuation multiple. We focus on long-term growth rather than short-term profitability. The company’s bold move won investor trust, but it also presented challenges due to the volatility of the cryptocurrency market.
Bitcoin Market Heats Up: ETF Inflows Fuel Rally
Bitcoin fell slightly to $97,527.03 at press time after hitting a new all-time high of $97,862.64. Market activity showed an increase in intraday trading volume, up 15.20% to $86.73 billion. Bitcoin’s dominance is strong at 60.55%, solidifying its market position. ETF inflows, particularly BlackRock’s IBIT, which recorded $627.7 million of total ETF inflows of $750 million on Wednesday, further fueled the rally.