$3.3T Capital Group’s ANCFX Fund Buys $747M in MicroStrategy Stock
Highlights
- Capital Group's ANCFX fund expands MicroStrategy stock holdings to $1.78 billion with $747 million buy.
- Strategy surpassed BlackRock in Bitcoin holdings and now sits at $710 million in unrealized profit.
- MSTR stock jumps over 2% on Tuesday as analysts forecasts further upside.
Capital Group has purchased $747 million worth of MicroStrategy stock (NASDAQ: MSTR) through its American Funds Fundamental Investors fund (ANCFX). MSTR shares have jumped more than 23% over the past week amid massive Bitcoin accumulations, with further gains on Tuesday.
Capital Group’s American Funds Expands MicroStrategy Stock Holdings
American Funds Fundamental Investors (ANCFX) of Capital Group, one of the world’s largest and oldest asset managers with $3.3 trillion in AUM, disclosed a new Microstrategy stock purchase, BitcoinTreasuries reported on April 21.
The fund bought 4.32 million more MSTR stock worth $747 million of Bitcoin treasury company Strategy. With the latest buy, Capital Group’s American Funds Fundamental Investors (ANCFX) now holds 10.33 million MicroStrategy stock worth $1.78 billion.
This comes as the largest Bitcoin treasury acquired 34,164 BTC for $2.54 billion. Michael Saylor’s Strategy now holds 815061 BTC, acquired for almost $61.56 billion. The current market value is $62.27 billion, indicating that Strategy is sitting at a $710 million profit.
Strategy surpassed BlackRock in Bitcoin holdings as the company uses STRC to raise funds to continue its aggressive Bitcoin accumulation. While economist Peter Schiff labeled STRC as “fraud,” investors continue to enjoy monthly cash dividends, with 11.5% annualized yield.
The Bitcoin treasury also plans to shift STRC payouts from monthly to bi-monthly, keeping the 11.5% annual dividend unchanged. However, STRC stock is trading below $100 par value, implying no BTC purchases.
As CoinGape reported earlier, $12 trillion Vanguard boosted Bitcoin exposure with a $195 million MSTR stock purchase. The latest buy expands the firm’s total stake in MSTR to almost $255 million.
Analysts Forecast on MSTR Stock
MicroStrategy stock trades more than 2% higher in pre-market hours on Tuesday. The stock closed 2.58% higher at $170.81 on Monday amid hopes of US-Iran peace talks. The intraday low and high were $160.63 and $171.06, respectively.
Bitcoin price is trading 2% higher at around $76,400 at press time. The 24-hour low and high are $74,755 and $76,881, respectively. Trading volume has also increased amid no major macroeconomic releases for days.
CoinGape predicts MSTR stock price could hit $200 by May as Strategy’s BTC gains jump 82% in one week. The double bottom pattern on the daily chart signals a strong uptrend ahead.
Investment bank TD Cowen analyst Lance Vitanza has reiterated a buy rating on MicroStrategy stock. He maintained a price target of $385.
Also, Cantor Fitzgerald analyst reiterated an “overweight” rating on MicroStratgey stock. He cited improving liquidity amid dividend frequency shift, price stability, and consistent capital raising for BTC strategy. He also maintained his price target of $213.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
