Saylor’s MicroStrategy buys $6M more bitcoin, now has a total of 130,000
MicroStrategy (MSTR), the largest corporate owner of bitcoin, announced Tuesday morning that it has purchased an additional 301 bitcoins for approximately $6 million in cash, according to an 8-K filing with the SEC.
The latest round of bitcoin purchases boosts the bitcoin business intelligence cloud company’s holdings to 130,000 bitcoins, up from 129,699 at the end of the second quarter.
According to the filing, the company’s last bitcoins were purchased at an average price of approximately $19,851 per coin. The aggregate purchase price for all bitcoin is approximately $3.98 billion with an average purchase price of approximately $30,639 per bitcoin, including fees and expenses, per filing.
The purchase follows the public company’s second-quarter earnings call last month, when it announced that company founder Michael Saylor would step down from his role as CEO with MicroStrategy president Phong Le taking the position.
In its second-quarter results, MicroStrategy also disclosed a $917.8 million loss attributable to bitcoin on its balance sheet, while writing down the assets as intangible assets to their lowest value for the period.
At the end of the second quarter, the book value of MicroStrategy’s digital assets consisting of approximately 129,699 bitcoins was $1.988 billion.
A well-known bitcoin influencer, Saylor remains the company’s executive chairman, focusing primarily on “innovation and long-term corporate strategy, while continuing to provide oversight of the company’s bitcoin acquisition strategy,” according to its second-quarter earnings release.
More recently, the company announced an application to issue $500 million in additional equity shares.
Saylor is also being sued by DC’s AG for alleged tax evasion, which the AG claims also implicates MicroStrategy.
Saylor has responded to the lawsuit, saying, “I respectfully disagree with the position of the District of Columbia, and look forward to a just resolution in the courts.”
MicroStrategy also denies the allegations as false, adding “we will defend ourselves aggressively against this overreaction.”
The company’s shares have traded down 1.5% in premarket trading at $203 apiece. Year to date they are down 62% from $558.
Bitcoin (BTC-USD), which has lost 60% of its value since early January, is trading at $19,103 as of Tuesday morning. In the past 24 hours, it has gained 2% after falling as low as $18,780 early Monday.
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David Hollerith is a senior reporter at Yahoo Finance covering cryptocurrency and stock markets. Follow him on Twitter at @DsHollers
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