MicroStrategy announced a $561 million purchase of Bitcoin on Monday, using the proceeds of the company's treasury stock sale to boost the company's stock in the Nasdaq 100-index.
After selling 1.3 million shares last week, Microstrategy used the proceeds to expand its Bitcoin holdings by 5,200 BTC, according to the SEC. Filing.
The self-proclaimed Bitcoin development company now sits at 444,262 BTC worth, worth $42 billion at the time of writing. Tyson, Virginia-based company Since Bitcoin began piling up in 2020, it has become the world's largest holder of the asset and set a model that many other firms have since followed.
MicroStrategy's latest purchase represents the seventh consecutive Monday that the company has purchased Bitcoin, totaling 192,000 BTC since November 11. Saylor Tracker. This sum is valued at around $18 billion as of this writing.
Monday's announcement comes as MicroStrategy has been hoarding bitcoin for some time. It comes at a historic time for the company, which was founded in 1985. It includes the top 100 non-financial companies listed on the Nasdaq stock index, such as Apple and Nvidia. MicroStrategy was added to the Nasdaq-100 index earlier this month.
Shares of MicroStrategy began trading publicly as part of the index Monday.
Michael Saylor, co-founder and CEO of MicroStrategy, wrote on X (formerly known as Twitter) that the company's most recent purchase was made at an average price of $106,600 per Bitcoin. When the firm started its Bitcoin-buying spree after Election Day, the firm started paying around $74,400 per Bitcoin.
The inclusion of micro-strategy in the benchmark was extensive. Thank you By Bitcoin enthusiasts, however, Bloomberg ETF analyst James Seifert said earlier that the stock's inclusion could have significant implications. Earlier this month he He wrote The shift will result in at least “$2.1 billion in ETFs buying shares,” the research notes.
Bitwise Senior Investment Strategist Juan Leon told Decrypt that microstrategy trading volume from efficient and active managers can result in 20% to 40% more trading volume in a single day.
“This will have a significant impact on the price,” he said, noting that the stock can rise 50% or more on days with positive flows and is now included in the Nasdaq-100 index.
Bitcoin's price peaked at $108,000 last week, but fell to $93,700 following dovish comments from the Federal Reserve. The US central bank is taking a cautious stance on inflation; he said. It will cut interest rates a little faster in the new year.
As Bitcoin hovers near record highs, Saylor compares Bitcoin to Manhattan's real estate sector. Increase The company “continues to buy the highest until the end.”
using Variable notesThe company was able to effectively buy Bitcoin. However, analysts note that focusing on the micro strategy is not without risk. A large amount of premium Compared to Bitcoin holdings in micro strategy stocks.
As Bitcoin fell below the $100,000 mark, so did MicroStrategy's stock price. Shortly after Monday's opening bell, shares of MicroStrategy were down 6 percent at $342, off a 17 percent decline over the past week.
Edited by Andrew Hayward.
Editor's note: This story has been updated to include analyst commentary since publication.
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