Bitcoin Tops $107K, MicroStrategy Buys More
Bitcoin (BTCUSD) prices shattered another record, rising above $107,000 with growing optimism around reports that President-elect Donald Trump may be considering establishing a bitcoin strategic reserve.
The largest cryptocurrency by market cap broke the $107,000 price barrier Monday, after crossing $106,000 for first time in late trading Sunday. Meanwhile, MicroStrategy (MSTR), which calls itself a bitcoin treasury company, announced yet another $1.5 billion bitcoin purchase.
MicroStrategy shares were up more than 5% in recent trading Monday, and have gained over 527% year-to-date.
MicroStrategy bought 15,350 bitcoins during the week ending December 15, for an average price of roughly $100,386 per bitcoin, the company reported. This purchase was financed by selling MicroStrategy shares.
The company now owns 439,000 bitcoins, worth approximately $47 billion at current prices. And its bet on bitcoin has had a big impact on its stock. MicroStrategy's market cap has grown from roughly $1.1 billion in August 2020 when it first adopted its bitcoin strategy to close to $100 billion now.
The exponential growth in MicroStrategy shares this year has been bolstered by rising bitcoin prices. Bitcoin rallied early this year due to demand from the newly launched spot bitcoin exchange-traded funds (ETFs), then the bitcoin halving and finally the reelection of Trump and hope of a more crypto-friendly administration.
But MicroStrategy shares may have more room to run. Its inclusion in the Nasdaq 100 index starting next week would imply many funds and ETFs—such as the Invesco QQQ Trust (QQQ)—purchasing the stock to align their portfolios to the index.
However, the next milestone of becoming a part of the S&P 500 index may prove to
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