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MSTR
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176 days

MicroStrategy now owns $47.4 billion worth of bitcoin after latest purchases - MarketWatch

1. MicroStrategy bought 20,356 bitcoins using $1.9B convertible bond funds. This boosts its crypto exposure. 2. It now holds 499,096 bitcoins bought for ~$33.1B. Value stands at $47.4B today. 3. Bitcoin trades are volatile amid pro-growth hopes. Investors worry about inflation risks. 4. MSTR plans to raise $42B via equity and fixed-income instruments. This secures its crypto-centric strategy. 5. The company reduced its workforce by 20.7%. R&D, consulting and sales suffered significant cuts.

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FAQ

Why Bullish?

The additional bitcoin acquisition using convertible bonds reinforces MSTR's crypto-first strategy. Historically, when MSTR boosts its bitcoin holdings, the stock tends to rally during bitcoin uptrends, as seen in previous surges following similar moves.

How important is it?

The article highlights significant strategic moves, including major bitcoin purchases and planned capital raises, which can materially impact MSTR’s risk/reward profile. While there is some operational restructuring risk, the aggressive commitment to bitcoin positions the company well for a favorable long-term market reaction.

Why Long Term?

MSTR’s strategy involves sustained capital raising and asset accumulation over several years. This long-term approach is likely to influence investor sentiment and price behavior over future bitcoin cycles.

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