MicroStrategy buys $10-mn Bitcoin in middle of crypto's big chill

As of June 28, the company holds about 129,699 Bitcoin bought for about $3.98 billion, or $30,664 per coin, according to the filing

Bitcoin, Crypto currency
Photo: Bloomberg
Bloomberg
2 min read Last Updated : Jun 29 2022 | 10:31 PM IST
Michael Saylor’s Bitcoin-backed tech firm MicroStrategy Inc. bought another 480 coins worth about $10 million at the height of the crypto market collapse.

The firm purchased the coins between May 3 and June 28 for about $20,817 each, according to paperwork filed with the US Securities and Exchange Commission Wednesday.

Bitcoin was trading close to $38,000 on May 3, hovering at about $20,000 from June 14 until June 28, implying the bulk of MicroStrategy’s purchases would have taken place over these last two weeks.

The acquisition represents MicroStrategy’s smallest Bitcoin buy in over a year. Its most recent purchase was nearly 90 days ago, on April 5, representing the longest stretch between purchases since the company embarked on its Bitcoin buying strategy. It has made nearly two dozen acquisitions over the last two years.

As of June 28, the company holds about 129,699 Bitcoin bought for about $3.98 billion, or $30,664 per coin, according to the filing.

The Tysons Corner, Virginia-based enterprise software maker is expected to reveal a significant financial hit when it releases its second quarter 10-Q this summer, given its enormous exposure to the bellweather token, which has more than halved in value this year.

Still, CEO Saylor is bullish on the future of Bitcoin and said the firm is well-positioned for when the markets turn around, in a July 17 interview with Bloomberg. He has also been a consistent Bitcoin advocate on his Twitter account.

Meanwhile, companies like Block Inc. (formerly Square) and Tesla Inc. that have invested in Bitcoin also face potential losses this quarter, while the recent selloffs in Bitcoin and its peers could deter others from investing in the digital-asset space.

Bitcoin slipped a little more than 1% to 20,021 as of 12:10 p.m. in New York Wednesday, while MicroStrategy shares fell about 3%.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Bitcoincryptocurrency

Next Story