MicroStrategy Announces Purchase of 1,895 Bitcoins
Yesterday (5th), MicroStrategy announced that from April 28 to May 4, it spent $180.3 million to acquire 1,895 bitcoins at an average purchase price of $95,167. After this purchase, the company’s total bitcoin holdings have reached 555,450 coins.
(Background: MicroStrategy launches a new $21 billion financing plan, undeterred by a $5.9 billion loss in Q1 from bitcoin, “continue to buy, buy, buy”)
(Context: MicroStrategy spent $1.42 billion to buy another 15,355 BTC, surpassing a total holding of 550,000 bitcoins; MSTR surged 27% in one month)
MicroStrategy, a leading holder of bitcoin among U.S. listed companies, announced yesterday (5th) that it spent $180.3 million to purchase 1,895 bitcoins from April 28 to May 4, at an average purchase price of $95,167.
MicroStrategy pointed out that after this acquisition, the company’s total bitcoin holdings have reached 555,450 coins, with a total purchase cost of $38.08 billion and an average purchase price of $68,550.
This acquisition was funded through proceeds from the sale of new shares. According to the announcement, to purchase these bitcoins, MicroStrategy sold 353,825 shares of MSTR (raising $128.5 million) and 575,392 shares of STRK (raising $51.8 million). Currently, MSTR has been fully sold, while there remains a balance of $20.87 billion available from STRK.
Additionally, it is noteworthy that MicroStrategy announced last week that it will commence a new round of financing amounting to $21 billion, with the goal still focused on the firm acquisition of bitcoin, continuing to buy, buy, buy.
MicroStrategy’s Stock Surges 44% in a Month
Last week, MicroStrategy released its financial report for the first quarter of this year. Although the report indicated that the company incurred a substantial $5.9 billion accounting loss in Q1 due to bitcoin price fluctuations, its unwavering investment stance in bitcoin and the recent recovery in bitcoin prices may have bolstered investor confidence, as the stock price rebounded to $400 on May 1.
Despite MSTR temporarily retreating to $386 as of the close of U.S. stocks last night (5th), its increase over the past month remains at an impressive 44%, with a market capitalization exceeding $100 billion.
Bitcoin Fluctuates Around $95,000 Level
Recently, bitcoin has seen some recovery, briefly rising close to $98,000 on May 2. However, after several days of fluctuating at this high point, it has failed to break through quickly, and last night it dipped below $94,000, currently reported at $94,566, without a clear upward trend.
U.S. Stock Market Ends Nine-Day Winning Streak
In the U.S. stock market, the S&P 500 and Dow Jones Industrial Average ended their nine-day winning streak on Monday. Although Trump indicated that a partial trade agreement might be reached this week, he also hinted that an agreement with China would not be immediate, failing to ease investors’ concerns about the economic impact of the trade war.
The Dow Jones Industrial Average fell by 98.60 points, or 0.2%, to close at 41,218.83 points.
The S&P 500 fell by 36.29 points, or 0.6%, to close at 5,650.38 points.
The Nasdaq Composite Index fell by 133.49 points, or 0.7%, to close at 17,844.24 points.
The Philadelphia Semiconductor Index fell by 40.88 points, or 0.9%, to close at 4,356.18 points.
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