MicroStrategy Purchases Another $489M of Bitcoin

21 June 2021

MicroStrategy said Monday it bought about 13,005 bitcoins for $489 million in cash at an average price of roughly $37,617 inclusive of fees and expenses. 

  • The business-intelligence software company now holds some 105,085 bitcoins, which were acquired for a total of $2.74 billion. That’s an average purchase price of $26,080 per bitcoin, inclusive of fees and expenses.
  • MicroStrategy said its newly formed subsidiary, MicroStrategy, holds about 92,079 BTC of the bitcoins.
  • CEO Michael Saylor has made bitcoin acquisition a second mandate for his 32-year-old company. Its other business is developing software.
  • The purchase follows MicroStrategy's raising of $500 million in case from the sale of debt to fund bitcoin buying. As the company subsequently filed to sell $1 billion in shares to help buy even more of the leading currency, we likely will see another purchase soon.
  • Shares of Nasdaq-listed MicroStrategy are getting pounded today, down more than 7%, as their fate are now largely tied to the price of bitcoin, which fell after China's central bank continued the nation's crackdown on crypto. The People's Bank of China said financial institutions must not provide trading, clearing and settlement for crypto transactions.
  • In recent trading, the price of bitcoin was down 4.49% to $32,540.54.

UPDATE (June 6, 13:47 UTC): Adds stock and debt offerings, share reaction, price of bitcoin.)

Read more: MicroStrategy Raises $500M From Bond Sale to Buy More Bitcoin

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