MicroStrategy (MSTR) on Monday announced that it acquired an additional 55,000 bitcoins (BTC-USD) last week for a total of $5.4 billion, coinciding with the cryptocurrency reaching high-level tradings. Soon after this announcement, the shares of the company fluctuated around the baseline but eventually closed the trading sessions down by 4%.
In a report that was submitted to the SEC, MicroStrategy disclosed that the acquisition of these bitcoins occurred between 1the 8th and 24th of November with an average purchase price of $97,862 per bitcoin. The funding for this acquisition was sourced from proceeds generated through convertible notes and equity sales.
This application software firm has placed itself as a proxy for Bitcoin investment and has been playing an active role in purchasing Bitcoins since 2020. Recently, the pace of its acquisitions has slowed as bitcoin prices surged past $99,000, especially after the presidential victory of Donald Trump.
In previous weekly acquisitions, the company bought 51,780 bitcoins at an average price exceeding $88,500 each. As of Sunday, MicroStrategy’s total bitcoin holding amounted to around 386,700 with an overall investment of around $21.9 billion and an average cost of about $56,761 per bitcoin.
The stock of MicroStrategy has experienced significant volatility this year which has increased by over 515% year-to-date. However, it faced a decline of more than 15% last week after the short seller Citron Research announced its position against the stock.
Citron Research mentioned in a post on X that they are going to maintain a positive outlook on Bitcoin and have previously extended their support to MicroStrategy’s Bitcoin strategy, the stock of the company grew distant from the fundamentals of BTC.
Analysts of Wall Street have shown growing optimism related to the stock, especially in light of the recent performance of Bitcoin and its potential future trajectory.
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