MicroStrategy Buys Bitcoin Again, Stock Falls

Investopedia
2024-12-31

Key Takeaways

  • MicroStrategy announced a purchase of around $209 million in bitcoin Monday.
  • The company has now announced new bitcoin purchases for eight consecutive weeks.
  • This latest round of buying has pushed MicroStrategy's total bitcoin holdings to 446,400.
  • MicroStrategy shares were down 6% in early-afternoon trading Monday as bitcoin prices retreated.

MicroStrategy (MSTR) bought more bitcoin (BTCUSD) in the past week, making it eight weeks in a row that the company has acquired more of the digital currency.

The software company-turned-bitcoin buyer said in a filing with the Securities and Exchange Commission (SEC) Monday that it had spent around $209 million in cash to buy 2,138 bitcoin between Dec. 23 and Dec. 29 at an average price of $97,837. The company now holds 446,400 bitcoin.

Shares of MicroStrategy, which joined the Nasdaq 100 last week, were down more than 6% in recent trading as the price of bitcoin fell. The cryptocurrency was trading at around $92,500 recently, down from highs last week of around $99,000 and an all-time high of $108,000 set two weeks ago.

Purchases Part of MicroStrategy's '21/21' Strategy

The bitcoin purchases over the past week were funded through at-the-market (ATM) share sales as part of MicroStrategy’s previously-announced "21/21" strategy. The 21/21 plan is the company's strategy of raising $42 billion of capital by selling new shares and fixed-income securities to buy more bitcoin.

MicroStrategy also reported a year-to-date "bitcoin yield" of 74.1% in Monday's filing. That metric measures the growth in how many bitcoins per share MicroStrategy owns.

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