MicroStrategy buys $786M more bitcoin since late April

Tysons-based tech company MicroStrategy keeps growing its bitcoin holdings, most recently spending about $786 million to acquire almost 12,000 more of the cryptocurrency.

From April 27 to June 19, the company, which is widely reported to be the world’s largest corporate bitcoin holder, acquired approximately 11,931 bitcoins for approximately $786 million in cash, according to its June 20 filing with the U.S. Securities and Exchange Commission. On June 18, MicroStrategy completed a private offering of convertible senior notes, gaining about $786 million, which it used to make its most recent bitcoin purchases.

As of June 20, MicroStrategy and its subsidiaries held approximately 226,331 bitcoins, purchased for about $8.33 billion total. The average purchase price per bitcoin was $36,798, including fees and expenses. As of 4:04 p.m. Monday, bitcoins were selling for $59,459.37 apiece, according to CoinDesk, valuing MicroStrategy’s total holdings at more than $13.45 billion.

Bitcoin has steadily lost value over the past week. On June 17, bitcoin closed at $66,490.30. One factor for the cryptocurrency’s decline is that German authorities are selling bitcoins seized from crimes. Also, Mt. Gox, a cryptocurrency exchange that shut down in 2014, could start to repay clients, according to reporting from The Wall Street Journal, which could mean more bitcoin will hit the market soon.

MicroStrategy shares were trading for $1,372.15 at market close Monday but dropped to $1,367.67 in after hours trading as of 4:09 p.m. At the previous close, MicroStrategy shares were selling for $1,483.76.

MicroStrategy announced its first bitcoin purchase in August 2020, saying it had converted $250 million from its cash holdings to more than 21,000 bitcoins, making it one of the first public companies to convert its cash treasury reserves into cryptocurrency as a store of value.

The investment strategy was led by Executive Chairman Michael Saylor, who stepped down as CEO after the company’s August 2022 earnings report. Earlier this month, Saylor and MicroStrategy agreed to pay $40 million to resolve a tax fraud lawsuit filed by the city of Washington, D.C.