From Nasdaq:

MicroStrategy stock jumped 26.8% in December due to its heavy involvement with Bitcoin. The company owned nearly 175,000 Bitcoins at the start of December, with Bitcoin’s value increasing nearly 12% during the month. It bought an additional 14,620 Bitcoins, costing around $615.7 million in cash. To fund these purchases, MicroStrategy sold $610.1 million in stock in December. This cash is more than the cash produced by the company’s operations over the last five years combined. Looking forward, it’s likely MicroStrategy will continue to sell shares to buy even more Bitcoin.

Although MicroStrategy initially presented acquiring Bitcoin as a balance-sheet strategy, the recent actions in December show that it’s now raising money from investors to invest in Bitcoin. This corporate strategy does not provide the same real-world benefits as stocks or other investments. It’s predicted that Bitcoin is in for a great year in 2024, considering MicroStrategy holds over 189,000 Bitcoins. However, for long-term investments in MicroStrategy stock, it’s essential to have a plan that extends beyond buying as many Bitcoins as possible.

Regarding investing in MicroStrategy, it’s important to note that the Motley Fool Stock Advisor analyst team did not identify MicroStrategy as one of the top 10 stocks for investors to buy now. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. Jon Quast has positions in Bitcoin. The Motley Fool has positions in and recommends Berkshire Hathaway and Bitcoin.



Read more: Why MicroStrategy Stock Jumped 27% in December