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MicroStrategy's stock has surged over 600% this year, driven by founder Michael Saylor's aggressive Bitcoin investments funded through debt and equity markets. The company's strategy resembles a video-game glitch, allowing it to raise capital, buy Bitcoin, and repeat the cycle. With an average Bitcoin purchase price near $40,000 and current holdings valued at around $24 billion, the company's debt of $4.3 billion appears manageable, prompting plans for further borrowing.
Nvidia's stock reached a new high, closing up 0.5% and marking a 196% increase in 2024, despite high expectations. Meanwhile, MicroStrategy dropped 16% after a short report, while Fannie Mae and Freddie Mac saw significant gains amid privatization speculation. Tesla shares rose 35% since the election, contrasting with Amazon's slight decline.
Acurx Pharmaceuticals' board has approved the purchase of up to $1 million in bitcoin as a treasury reserve asset, following MicroStrategy's strategy. CEO David P. Luci emphasized bitcoin's limited supply and inflation-resistant qualities, asserting it will not affect the company's drug development plans. This move reflects a growing trend among corporations to adopt bitcoin, with the cryptocurrency trading at all-time highs and expected to gain further traction in the coming years.
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