MicroStrategy Inc. (NASDAQ: MSTR) witnessed an 11% surge in its stock price. This follows a series of announcements highlighting its aggressive Bitcoin strategy and financial maneuvers. Moreover, the company’s market capitalization is now more than the combined market cap of two largest gold mining companies.
MicroStrategy Stock Outshines Gold Stocks
Commenting on the development, Peter Schiff, a prominent financial commentator and gold advocate, expressed his concerns on X (formerly Twitter). “This is insane. $MSTR’s market capitalization now exceeds the combined market caps of $NEM and $GOLD, the two largest gold mining companies in the world,” he stated. Schiff sarcastically remarked, “I wonder how much longer it will take before MSTR’s market cap exceeds the capitalization of the entire gold mining industry!”
This is insane. $MSTR‘s market capitalization now exceeds the combined market caps of $NO and $GOLDthe two largest gold mining companies in the world. I wonder how much longer it will take before MSTR’s market cap exceeds the capitalization of the entire gold mining industry!
— Peter Schiff (@PeterSchiff) November 19, 2024
Schiff also remarked on the interplay between MicroStrategy’s stock price and Bitcoin investments, writing, “The higher the price of $MSTR stock, the more shares Michael Saylor can sell. The more shares he sells, the more #Bitcoin he can buy. The more Bitcoin he buys, the higher the Bitcoin price rises. When the price of Bitcoin goes up, the share price of MSTR goes up more. When does it end?”
MicroStrategy’s market capitalization now surpasses the combined valuations of Barrick Gold Corporation (NYSE: GOLD) and Newmont Corporation (NYSE: NEM), the two largest gold mining companies globally. This highlights the company’s meteoric rise driven by its Bitcoin-centric approach under Executive Chairman Michael Saylor’s leadership.
Potential Reasons for MSTR Stock Surge
On November 16, MicroStrategy revealed that it had acquired 51,780 Bitcoin for approximately $4.6 billion at an average price of $88,627 per BTC. The firm also disclosed a significant Bitcoin yield, achieving 20.4% quarter-to-date (QTD) and 41.8% year-to-date (YTD).
As of November 17, the company holds a total of 331,200 BTC acquired for approximately $16.5 billion, at an average purchase price of $49,874 per BTC. Moreover, in a related move, the company announced a proposed private offering of $1.75 billion in convertible senior notes. This indeed hints at further potential Bitcoin acquisitions.
The announcement of the private offering, coupled with the firm’s increasing Bitcoin reserves, continues to position MicroStrategy as a major institutional force in the crypto market. Hence, at the time of writing, the MSTR stock climbed 10.71% to $426.00 on Tuesday, November 18. Moreover, it attained a new 52-week high of 430.07.
Also Read: Ripple Not Recommended by MicroStrategy’s Michael Saylor