As bitcoin, ethereum and other cryptocurrencies get increasing attention from investors, Wall Street and its traditional banks continue to adjust to the shift. Catch up on this week’s top stories highlighting the intersection of these old guard and new school areas of finance with this recap compiled by The Fly.
MICROSTRATEGY PURCHASES OVER 3,900 BITCOIN: MicroStrategy (MSTR) disclosed Tuesday that during the period between July 1 and August 23, it purchased approximately 3,907 bitcoins for approximately $177M in cash, at an average price of approximately $45,294 per bitcoin, inclusive of fees and expenses. As of August 23, the company held approximately 108,992 bitcoins that were acquired at an aggregate purchase price of $2.918B and an average purchase price of approximately $26,769 per bitcoin. As previously disclosed, MicroStrategy entered into an open market sale agreement with Jefferies, pursuant to which the company may issue and sell shares of its class A common stock, having an aggregate offering price of up to $1.0B from time to time. MicroStrategy announced that during the period between July 1 and August 23, it had issued and sold an aggregate of 238,053 shares under the ATM facility, at an average gross price per Share of approximately $753.21, for aggregate net proceeds of approximately $177.5M.
Jefferies analyst Brent Thill raised the firm’s price target on MicroStrategy on Tuesday to $700 from $640 and kept a Hold rating on the shares. The analyst cited the company issuing equity to buy additional bitcoins, which brings the total value of its holdings to $5.3B based on $2.9B total investment. Thill added however that the stock looks fairly valued as MicroStrategy faces tough compares heading into the back half of FY21.
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