What happened
For the week, shares of business intelligence specialist and Bitcoin buyer MicroStrategy Incorporated (MSTR -2.82%) traded 8.5% higher as of 2:04 p.m. ET Thursday, according to data provided by S&P Global Market Intelligence. There was no obvious reason behind the move.
So what
It's hard to say exactly what is driving the stock's climb, although the price of Bitcoin is up about 2.65% this week.
Last week, MicroStrategy revealed in a regulatory filing that the company purchased more than 300 Bitcoin tokens between August 2 and September 19 for roughly $6 million, which equates to an average price of less than $20,000 per token. The company now owns about 130,000 Bitcoin tokens worth roughly $3.98 billion, with an average purchase price of $30,639 per token.
MicroStrategy's co-founder, Michael Saylor, has been a perennial Bitcoin bull, continuing to buy as the price has plummeted. Just last week, Saylor said he expects the price of Bitcoin to return to its former glory of nearly $69,000 per token within four years.
Furthermore, Saylor said he thinks Bitcoin will reach half a million within the next decade and that Bitcoin's four-year average price of about $20,000 could be the bottom. "It has touched that a few times. ... I think this is stable," he said.
Now what
MicroStrategy's business intelligence service gets completely overshadowed because the company is holding almost $4 billion worth of Bitcoin.
Like Saylor, I think Bitcoin will eventually move higher from here, although I'm certainly not making any $500,000 price-target calls right now. At these levels, I would prefer to just own Bitcoin itself instead of MicroStrategy stock.
