MicroStrategy Increases Its Bitcoin Holdings to About 2.5% of All Tokens

The purchase, the latest in a series of almost weekly acquisitions of the cryptocurrency since late October, increased the dot-com-era software maker turned leveraged Bitcoin proxy's holding of the digital asset to around $43.4 billion.

MicroStrategy Inc. said Monday it had purchased an additional 22,048 bitcoins at an average price of approximately $86,969 for a total purchase price of almost $241 million.

The latest purchase, which was announced in a press release, brings the company’s total bitcoin holding to about 2.5 percent of all the 21 million in tokens slated to be issued.

The former dot-com-era software maker has almost weekly scooped up the cryptocurrency since late October, pivoting to a leveraged bitcoin proxy from its enterprise software business.

The company is engaging in a common shares at-the-market sales program and preferred shares offerings to fund the latest bitcoin purchase.

The common shares of MicroStrategy are trading at 624.3 at 12:10 p.m. ET. The shares have surged about 2,200 percent since CEO Michael Saylor began investing the company’s cash into bitcoin as a hedge against inflation. Bitcoin is up over 600 percent during the same period.

Hedge funds have been driving some of the demand for the convertible debt that’s been doled out in public offerings, as they seek out MicroStrategy for trades that incorporate buying the bonds and selling the shares short, essentially betting on the underlying stock’s volatility.output: MicroStrategy Inc. (NASDAQ:MSTR) said Monday it had purchased 22,048 bitcoins at an average price of approximately $86,969.

The latest purchase, which was announced in a press release, brings the company’s total bitcoin holding to about 2.5 percent of all the 21 million in tokens slated to be issued.

The former dot-com-era software maker has almost weekly acquired the cryptocurrency since late October, pivoting to a leveraged bitcoin proxy from its enterprise software business.

The company is engaging in a common shares at-the-market sales program and preferred shares offerings to fund the latest bitcoin purchase.

The common shares of MicroStrategy are trading at 624.3 at 12:10 p.m. ET. The shares have surged about 2,200 percent since CEO Michael Saylor began investing the company’s cash into bitcoin as a hedge against inflation. Bitcoin is up over 600 percent during the same period.

Hedge funds have been driving some of the demand for the convertible debt that’s been doled out in public offerings, as they seek out MicroStrategy for trades that incorporate buying the bonds and selling the shares short, essentially betting on the underlying stock’s volatility.