On the evening of November 11, Beijing time, the price of Bitcoin suddenly surged, rising nearly 10% in a single day, briefly breaking $88,000 per coin. As of 07:00 on the 12th, it was reported at $88,567 per coin, again setting a new historical high.
Bitcoin's market capitalization has surpassed that of silver, becoming the eighth largest asset in the world, with Bitcoin's market capitalization currently at $1.741 trillion and silver's at $1.735 trillion.
On the news front, MicroStrategy, a 'large holder of Bitcoin', suddenly announced that it spent approximately $2.03 billion (about 14.6 billion RMB) to buy around 27,200 Bitcoins, marking the largest purchase since December 2020.
Stimulated by this news, MicroStrategy's stock price also surged significantly, at one point rising over 30% during the session. By the close, the increase was still over 25%, bringing the total market value up to $68.899 billion (approximately 500 billion RMB).
On October 30, while announcing its third-quarter report, MicroStrategy unveiled a '21/21 plan' to raise $42 billion through $21 billion in equity and $21 billion in bonds over the next three years to purchase more Bitcoin. Of the $21 billion in equity financing, over $3.5 billion has already been raised.
In recent years, MicroStrategy has been investing in Bitcoin to hedge against inflation, continuously buying it up, making it the company with the largest Bitcoin holdings among U.S. publicly traded companies. As of September this year, MicroStrategy holds over 250,000 Bitcoins, valued at over $17 billion as of October 31.
As a result, MicroStrategy's stock price is deeply tied to Bitcoin. Since the beginning of 2024, MicroStrategy's stock price has increased by 438%, while Bitcoin's cumulative increase during the same period has been 101%.
There is a significant divergence among Wall Street analysts regarding the future performance of MicroStrategy's stock price.
On one hand, some analysts believe that the current stock price is already too high relative to its asset value and is unlikely to continue rising. On the other hand, some analysts believe that next year's new accounting standards will value the company's held Bitcoins at market prices, thus reversing MicroStrategy's loss situation, making the company's stock still worth 'buying'.
Benchmark Intech analyst Mark Palmer stated that the latest financing plan eliminates any doubts about whether MicroStrategy will continue its Bitcoin acquisition strategy during the Bitcoin market rise.
Palmer predicts that if MicroStrategy proceeds with the '21/21 plan', MSTR stock could be valued at $300. His model assumes that Bitcoin's price will continue to rise, expecting it to reach $175,000 by the end of 2025.
