MicroStrategy Enhances Bitcoin Holdings with $217 Million Purchase of 1,955 BTC

What to know:

MicroStrategy acquired 1,955 BTC for $217 million, averaging $111,196 per coin, now holding a total of 638,460 BTC.
The purchases come following a significant decrease in share value and missing inclusion in the S&P 500 index.
MicroStrategy’s shares have seen a decline of 26% since July, now trading at $335.

Recent Financial Moves

MicroStrategy (MSTR) recently disclosed its purchase of another 1,955 BTC for $217 million, raising their overall holdings to 638,460 BTC according to an SEC filing.

These acquisitions were made at $111,196 per Bitcoin, increasing the average purchase price to $73,880 per Bitcoin.

The announcement coincided with Bitcoin’s recent price fluctuation, starting at $110,500 and peaking at $112,200 before settling at $111,800 after the announcement.

MicroStrategy has faced scrutiny from investors regarding its mNAV promises; the firm initially stated they would not issue shares if their mNAV fell below 2.5X, a promise they retracted subsequent to a price drop, allowing for potential dilution of shares.

The new acquisitions also occur after MicroStrategy’s failure to secure a place in the S&P 500 index, competing against Robinhood (HOOD), despite a strong quarterly performance that met inclusion criteria.