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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