Microstrategy continues its shopping with Bitcoin but the effect on stocks does not appear to be positive.
In fact, yesterday the company led by Michael Saylor announced a further purchase of BTC:
MicroStrategy has purchased an additional 13,005 bitcoins for ~$489 million in cash at an average price of ~$37,617 per bitcoin. As of 6/21/21 we #hodl ~105,085 bitcoins acquired for ~$2.741 billion at an average price of ~$26,080 per bitcoin. $MSTRhttps://t.co/gLfnOxZEZc
— Michael Saylor⚡️ (@michael_saylor) June 21, 2021
Specifically, another 13,000 bitcoins were bought for a total of 489 million dollars, at an average price of 37,617 dollars per bitcoin.
This leads Microstrategy to hold 105,000 bitcoins , for a total expenditure of 2.7 billion in value . The average purchase price is $ 26,080 per bitcoin.
However, perhaps due to the drop in the price of Bitcoin due to the difficulties that miners in China are facing over the hostility of the government, investors seem not to have liked the further purchase.
Microstrategy shares down
At the time of writing this piece, in the pre-market phase , Microstrategy shares listed on Nasdaq are down 9% since yesterday. In fact, yesterday the market had played a bad joke on MSTR shares, with a drop of 7.5%.
This loss is also linked to the fact that Microstrategy is selling bonds to buy bitcoin again. So Michael Saylor’s strategy seems to rely more on bitcoin than anything else .
The 105,000 bitcoins owned by Microstrategy are worth a whopping 3.3 billion dollars . But the drop in the price of BTC could affect both the total value of BTC owned by Microstrategy, and again the value of the shares.
MSTR shares are currently worth $ 583.67 and lost about $ 63 yesterday. Last February, in full Bitcoin hype, they were worth a whopping 1,200 dollars. However, since the opening of 2021 to date, Microstrategy has gained 37% on the Nasdaq. It is also significant that since it announced to adopt bitcoin as a primary reserve (August 2020), to date, the company’s shares have soared by almost 400%.
In short, if in the short term investors seem worried about Michael Saylor’s euphoria around bitcoin, in the long term this vision has actually been rewarded.