Representations of the Bitcoin cryptocurrency can be seen in this illustration image from June 7, 2021.
Egdar Su | Reuters
MicroStrategy announced on Monday that after completing another round of purchases, it owns more than 100,000 bitcoins and this time it has spent around $ 489 million on 13,005 tokens.
The Virginia-based enterprise software company’s shares were down more than 9% in intraday trading, reflecting a similarly large drop in Bitcoin on Monday. The cryptocurrency fell more than 7% to around $ 32,600 per token when reports surfaced that China stepped up its crackdown on bitcoin mining.
According to MicroStrategy, the average purchase price of its 105,085 Bitcoin deposit is $ 26,080 each, including fees and other expenses. The company’s holdings were more than $ 3 billion as of Monday.
MicroStrategy has gone from relative obscurity to a well-known force on Wall Street and the crypto community over the past year thanks to its aggressive betting on Bitcoin and evangelization from Chairman and CEO Michael Saylor, who routinely promotes Bitcoin on Twitter. He has over 1 million followers on the social media site.
In a CNBC interview last week, Saylor defended the company’s crypto aspirations, which included offering debt to buy more bitcoin. MicroStrategy also recently filed for a program to sell additional shares valued at $ 1 billion, the proceeds of which can be used to purchase Bitcoin.
“We have rotated our shareholder base and turned into a company that can sell enterprise software and acquire and hold bitcoin, and we have successfully done so with leverage,” said Saylor.
“That increased the strength of the brand by a factor of 100. We just had our best software quarter … in the last 10 years last quarter, “he added, noting that total revenue was up 10% year over year. “The bitcoin business drives shareholder returns. I think the staff are happy. The shareholders are happy. “
MicroStrategy shares have soared since the company announced its first pre-bellied Bitcoin purchase on August 11th. The stock is up roughly 423% since August 10, near the closing price of $ 646.46 on Friday.
The stock hit a 52-week high on February 9, trading above $ 1,300 per share, the highest level since the dot-com boom.
Bitcoin has had a difficult trading period in the past two months after hitting its all-time high of $ 65,000 in April, around the time Coinbase’s blockbuster direct listing.
Bitcoin, the world’s largest cryptocurrency by market value, is still up about 11% year-to-date based on Monday morning’s trading price.