MicroStrategy is at it again – buying Bitcoin and making its financial health increasingly more in line with the biggest cryptocurrency. For now, the stock is falling in line with the digital asset it continues to buy.
Founded by Bitcoin bull Michael Saylor—now the group’s chairman—MicroStrategy (ticker: MSTR) is a business intelligence company that has emerged alongside Tesla ( TSLA ) as one of the few public companies buying significant amounts of crypto. Beyond having digital assets in the corporate treasury, MicroStrategy is…
MicroStrategy is at it again – buy
Bitcoin
and making its financial health increasingly more in line with the largest cryptocurrency. For now, the stock is falling in line with the digital asset it continues to buy.
Founded by Bitcoin bull Michael Saylor—now the group’s chairman—MicroStrategy (ticker: MSTR) is a business intelligence company that has emerged alongside Tesla ( TSLA ) as one of the few public companies buying significant amounts of crypto. Beyond having digital assets in the company’s finances, MicroStrategy is also expanding its core business to include crypto software development.
And the company is only getting more bullish on Bitcoin, which, despite a rally of around 70% so far this year, remains significantly down — at $28,000 — from its late-2021 record high near $69,000. After announcing a round of purchases of $150 million through February and March just weeks ago, the group detailed further purchases in a filing with the US Securities and Exchange Commission on Wednesday.
MicroStrategy said that between March 24 and April 4, it and its subsidiaries purchased about 1,045 Bitcoins for about $29.3 million in cash, representing an average price of about $28,016 per Bitcoin, including fees and expenses. That brings MicroStrategy’s total holdings to about 140,000 Bitcoins, worth about $3.9 billion — below the combined purchase price of $4.17 billion, which represents about $29,803 per coin.
MicroStrategy shares fell 2.7% in Wednesday trading, with shares down another 0.4% in Thursday’s premarket. But the company’s share price has still doubled this year, outpacing even Bitcoin, as it has risen alongside other stocks that tend to trade in line with crypto prices, such as broker Coinbase Global ( COIN ). Perhaps there are some advantages to being a proxy for Bitcoin.
Advertisement – Scroll to continue
Write to Jack Denton at [email protected]
