MicroStrategy Incorporated MSTR, a provider of enterprise analytics software and services, has been in the spotlight due to its strategy of holding Bitcoin BTC/USD on its balance sheet.
MicroStrategy CEO Michael Saylor is a self-proclaimed Bitcoin bull, who promotes the most valued cryptocurrency with his tweets and statements.
What Happened: With Bitcoin having come off its early November highs, MicroStrategy has added more Bitcoins in the quarter-to-date period in the fourth quarter, according to a new filing with the SEC.
The company said between Oct. 1 and Nov. 29 it purchased about 7,002 Bitcoins valued at $414.4 million in cash at an average price of about $59,187 per Bitcoin.
After a steep rally from late 2020, Bitcoin began a period of consolidation between February and mid-July. The crypto then took off and hit an all-time high of $68,789.63 on Nov. 10.
MicroStrategy's filing also revealed that as of Nov. 29, the firm held about 121,044 Bitcoins, valued at $3.57 billion, based on the purchase price. The average purchase price for the holdings has been $29,534.
At current prices, the holdings could be worth about $7 billion.
Related Link: What Does Bitcoin's Historical December Performance Tell About Its Potential Year-end Price?
Updating on the open market sale agreement of its common shares announced in mid-June, MicroStrategy said in the quarter-to-date period it has issued and sold an aggregate of 571,001 shares at an average price of $732.16 per share for raising net proceeds of about $414.4 million.
This suggests the company may have invested all of the proceeds to buy Bitcoin.
Why It's Important: Despite the current lackluster phase, which has seen Bitcoin experiencing a correction, forecasts call for the crypto to go through the roof, fueled by large-scale mainstream adoption and amid the inflationary environment.
If the crypto heads southward, MicroStrategy could face a setback, given the company has piled up debt to add to its Bitcoin holdings.
MicroStrategy now has the second-largest Bitcoin holdings among public companies, after Tesla Inc TSLA.
As of Monday morning at publication, MicroStrategy shares were up 3.12% to $683.67 and Bitcoin was up 4.90% at $57,022.98.
Related Link: After AMC, Second Largest US Theater Chain To Accept Bitcoin, Dogecoin And More As Payment
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
