MicroStrategy Buys $191M Worth of Bitcoin

MicroStrategy, the bitcoin-accumulating business-intelligence software company, has bought 4,167 since mid-February.Read MoreFeedzy

MicroStrategy (MSTR), a bitcoin-accumulating business-intelligence software company, said it bought another 4,167 BTC for around $190.5 million.

The purchases took place between Feb. 15 and Monday, MicroStrategy said in a statement Tuesday.

The Tysons Corner, Va.-based company paid an average price of $45,714 per bitcoin.

The cash used to purchase the bitcoin likely stems from proceeds of MicroStrategy’s recent $205 million loan from Silvergate Bank, Mark Palmer, an equity research analyst at BTIG, told clients in a note Tuesday.

MicroStrategy now holds a total of 129,218 bitcoins, valued at about $6 billion at the current price of about $46,742. CEO Michael Saylor has said on several occasions that the company plans to hold the bitcoin long term and has no plans to sell it.

The bitcoin acquired across the 49-day period averages to 85 a day, up from the 20 it acquired a day between Dec. 30. and Jan. 31. In an earlier statement, the company indicated it hadn’t bought any bitcoin in the first half of February.

MicroStrategy shares fell as much as 1% in early trading.

Michael Bellusci contributed to this story.

UPDATE (April 5, 13:44 UTC): Adds commentary on Silvergate Bank loan in third bullet point, share performance in sixth.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Leave a Reply

Your email address will not be published.