What's Going On With Bitcoin-Linked MicroStrategy Stock?

MicroStrategy Inc MSTR shares are volatile as Bitcoin BTC/USD continues to slide. The company on Monday said it has been on a Bitcoin buying spree.

What To Know: In a new regulatory filing, MicroStrategy announced that it acquired approximately 5,445 bitcoin for approximately $147.3 million in cash from Aug. 1 to Sept. 24, bringing its total bitcoin holdings up to approximately 158,245.

The company and its subsidiaries bought the bitcoin for an average price of $27,053. Microstrategy's average cost for all of its bitcoin holdings is now $29,582. 

MicroStrategy also announced that it has issued and sold 403,362 shares of its common stock since the beginning of August for aggregate net proceeds of approximately $147.3 million. The company previously entered into a sales agreement in which it may issue and sell up to $750 million worth of its common stock from time to time. 

MicroStrategy is a business intelligence, mobile software, and cloud-based services company, but more than anything else, it's a bet on Bitcoin. In an interview last month, MicroStrategy executive chairman Michael Saylor noted that the volatility in the company's stock due to its Bitcoin position allows it to borrow and raise capital at low cost in order to turn around and buy more Bitcoin and grow its business.

See Also: Crypto Analyst Says Bitcoin 'Bottom' Not In Yet, Predicts New Six-month Lows

MSTR Price Action: MicroStrategy shares were down 1.24% at $318.80 at time of publication, per Benzinga Pro. Bitcoin was down more than 2% over a 24-hour period at last check.

Photo: Eivind Pedersen from Pixabay.