MicroStrategy buys an additional 2,138 BTC at prices below $100,000

MicroStrategy Inc.’s shares witnessed a decline yesterday, Monday, after it announced the sale of an additional amount of its common shares in order to finance the purchase of more Bitcoin (BTC). This step is part of its ongoing strategy to enhance its holdings of the cryptocurrency.

Purchase and sale details

The company’s shares fell by 5%, after MicroStrategy revealed that it sold 592,987 thousand shares during the period from December 23 to 29, achieving net proceeds of about $209 million. The company used these proceeds to purchase 2,138 BTC at an average price of $97,837 per coin.

However, MicroStrategy shares closed an additional 0.6% lower to $92,100 per share, indicating that the company paid about 6% above the current market price.

Previous purchases

On December 23, MicroStrategy disclosed that it had sold shares worth $561 million to fund the purchase of 5,262 BTC at an average price of $106,662. The move continued a streak of eight consecutive weeks during which the company sold shares to buy Bitcoin.

Stock performance and policy impact

MicroStrategy stock has seen a massive 399% rise through 2024, including a 37% gain since Donald Trump was elected president.

Analysts expect the Trump administration, a Republican, to be more supportive of cryptocurrencies compared to the administration of Democratic President Joe Biden and the Securities and Exchange Commission led by Gary Gensler, who has been described by many in the sector as having a “hostile” stance towards cryptocurrencies.

However, Trump has previously expressed doubts about cryptocurrencies, calling Bitcoin a scam.

Long term strategy

4 years ago, MicroStrategy announced the adoption of Bitcoin as a major treasury reserve asset.

On October 30, the company entered into an agreement with brokers to sell up to $21 billion of its shares to fund Bitcoin purchases.

As of December 29, it still has approximately $6.88 billion in shares available for sale under this agreement.

Current holding size

Currently, the company and its subsidiaries own 446.4 thousand BTC, which were purchased at a total cost of about $27.9 billion, at an average price of $62,428 thousand per BTC. With current prices, the value of these holdings is about $41.1 billion.