MicroStrategy, the business intelligence company turned major Bitcoin holder, announced Monday that it has acquired 55,500 Bitcoin for $5.4 billion. The purchase, completed at an average price of $97,862 per Bitcoin, raises the company’s total holdings to 386,700 BTC, valued at approximately $36.8 billion.

Benchmark analyst Mark Palmer raised his price target for MicroStrategy’s stock to $650, the highest on Wall Street, citing the company’s ability to create shareholder value through its treasury strategy. “We believe [MicroStrategy’s] equity valuation must include the value created by its treasury operations, much like a company’s production of goods or services,” Palmer wrote. However, Bitcoin's price, which slipped 2.8% on Monday, has prompted questions about whether MicroStrategy’s stock is trading at too steep a premium relative to the market value of its Bitcoin holdings.

MicroStrategy’s stock, which has surged 532% year-to-date, is up sharply compared to Bitcoin’s 126% gain in the same period. Palmer’s optimistic valuation comes as the company aims to raise $42 billion through debt and equity sales over the next three years to purchase more Bitcoin.

MicroStrategy’s latest purchase underscores its confidence in Bitcoin’s future as a strategic asset. Saylor’s approach—raising capital to buy Bitcoin regardless of market conditions—has positioned his company as a dominant force in the Bitcoin space. However, the debate over decentralization and ownership concentration continues to grow as Bitcoin’s adoption expands and institutional involvement deepens.

For now, Bitcoin’s price surge and the optimism surrounding institutional interest remain the focus. Whether this trend supports Bitcoin’s decentralization principles or challenges them remains to be seen.

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