MicroStrategy Buys More Bitcoin: What's Going On With The Stock?

MicroStrategy Incorporated MSTR shares are trading lower Tuesday amid a pullback in the price of Bitcoin. The company announced the completion of its previously announced offering and the purchase of additional bitcoins. 

What To Know:

MicroStrategy announced it has completed its previously announced offering of 0.875% convertible senior notes due 2031. The aggregate principal amount of the notes sold in the offering was $603.75 million. 

The company also announced that, during the period between March 11 and March 18, it acquired approximately 9,245 additional bitcoins, using $592.3 million of proceeds from the offering, for approximately $623 million in cash, at an average price of approximately $67,382 per bitcoin. 

As of March 18, the company holds approximately 214,246 bitcoins, acquired at an aggregate purchase price of approximately $7.53 billion and an average purchase price of approximately $35,160 per bitcoin.

Bitcoin has pulled back in recent days and is trading at $62,702.66 at the time of publication. 

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MSTR Stock Forecast in 2030:

Predicting the future in stock prices over long periods of time is challenging. Wall Street analysts use complex models that take into account interest rates, economic growth, competitive advantages, management teams and historical profitability, among a host of other factors.

If, as an investor, you want to assume most of the major factors remain stable, you can use trend analysis as a helpful tool. Using a longer term trend line or historical performance of the stock, you can aim to forecast a stock's annual rate of return.

For MicroStrategy MSTR, over the past 5 years, it's annualized stock performance is 58.63%, and if you assume that trend continues for another 5 years, you can expect a stock to trade at $12,850.88.

Using a trend line (see how to perform this function here), If you choose to use a trend line, connect your two points and look into the future to the point in time in which you're curious. Once you've identified that stock price, you may want to consider what type of conditions would need to exist for the stock to justify the share price – be it an outside influence or managerial decision making.

MSTR Price Action: According to Benzinga Pro, MicroStrategy shares are down 11.7% at $1,327.53 at the time of publication.

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