MicroStrategy's recent financial maneuvers have sparked a cautious response from investors. The company disclosed in an SEC 8-K filing that it sold approximately 3.01 million shares, raising $1.1 billion, which was used to purchase 11,000 bitcoins at an average price of $101,191 per bitcoin. This acquisition has increased MicroStrategy's total bitcoin holdings to about 461,000. However, the high purchase price compared to the company's historical average of $63,610 per bitcoin has raised concerns. Additionally, the reported BTC Yield of 1.69% for the period from January 1 to January 20, 2025, is being scrutinized as investors assess the risks and rewards of the company's aggressive bitcoin strategy.
The Defiance Daily Target 1.75x Long MSTR ETF (MSTX) experienced a slight decline, dropping 0.45% to $61.63 at 8:40 AM on Tuesday, January 21.