MicroStrategy Buys Bitcoin Again, Stock Falls

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Key Takeaways

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

MicroStrategy (MSTR) bought assorted 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 customer said in a filing with the Securities and Exchange Commission (SEC) Monday that it had spent around $209 million in lolly 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.

Pieces of MicroStrategy, which joined the Nasdaq 100 last week, were down more than 6% in modern trading as the price of bitcoin fell. The cryptocurrency was trading at around $92,500 recently, down from highs finish finally 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 acquires over the past week were funded through at-the-market (ATM) share sales as part of MicroStrategy’s previously-announced “21/21” policy. 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 multifarious bitcoin.

MicroStrategy also reported a year-to-date “bitcoin yield” of 74.1% in Monday’s filing. That metric be equal ti the growth in how many bitcoins per share MicroStrategy owns.