MicroStrategy Buys The Dip With $10 Million Bitcoin Purchase
Business intelligence firm MicroStrategy has further expanded its position in Bitcoin, buying another $10 million as the markets tumbled. An SEC filing from Friday morning shows the company bought an additional 314 Bitcoin at an average price of $31,808, during a […]
- Business intelligence firm MicroStrategy now owns 70,784 Bitcoin in total.
- The firm’s average purchase price per coin was $16,035.
Business intelligence firm MicroStrategy has further expanded its position in Bitcoin, buying another $10 million as the markets tumbled.
An SEC filing from Friday morning shows the company bought an additional 314 Bitcoin at an average price of $31,808, during a turbulent 24 hours for the market that saw the price slide all the way to $28,950.
This latest purchase brings the firm’s holdings to 70,784 Bitcoin at a value of $1.13 billion. CEO Michael Saylor announced the purchase in a tweet.
In December, the company closed a debt round of $650 million in convertible bonds at 0.75% interest in order to bolster its reserves of Bitcoin. The company first began buying Bitcoin in August 2020 making an initial purchase worth $250 million. At the time Saylor said the investment was intended to be a viable hedge against monetary debasement.
Since its first purchase in August the company’s stock has risen by over 300% moving from an average of $130 in August to over $540 as of late January as investors increasingly view it as a macro proxy for Bitcoin.
However, not everyone has been a fan of the pivot. In December, Citi analyst Tyler Radke lowered his recommendation on MicroStrategy to “sell” from “neutral” warning that the company was overexposed on a “disproportionate” Bitcoin focus.
