MicroStrategy bought a total of 105,085 bitcoins for $2.741 billion at an average price of ~$26,080 per bitcoin
Early this month, Virginia-based MicroStrategy announced it was borrowing $400 million to buy more bitcoin even as the company’s stocks plunged from an all-time high of $1292 to $553.72 today. Since then, the price of bitcoin has also fallen from $35,800 on June 7 to $32,523.40 as of the time of writing.
On the same day, the company also announced the formation of two new entities — MicroStrategy Services Corporation and MacroStrategy LLC, to hold its bitcoin. Meanwhile, the $400 million loan was in addition to the $600 million Microstrategy borrowed in February when Bitcoin was trading above $50,000.
Now, Microstrategy is going all-in on Bitcoin with probably no exit strategy if the bitcoin price were to go to zero. Yesterday, MicroStrategy announced that it had purchased an additional approximately 13,005 bitcoins for approximately $489 million in cash at an average price of approximately $37,617 per bitcoin, inclusive of fees and expenses.
“As of June 21, 2021, MicroStrategy holds an aggregate of approximately 105,085 bitcoins, which were acquired at an aggregate purchase price of approximately $2.741 billion and an average purchase price of approximately $26,080 per bitcoin, inclusive of fees and expenses. MacroStrategy LLC, a subsidiary of MicroStrategy, holds approximately 92,079 of the bitcoins,” Microstrategy said on its website.
Microstrategy founder and CEO Michael Saylor also took to social media to announce the company’s recent bitcoin acquisition. In a tweet, Saylor said MicroStrategy has now acquired a total of 105,085 bitcoins for $2.741 billion at an average price of ~$26,080 per bitcoin, making Microstrategy one of the top ten largest bitcoin holders in the world.
MicroStrategy has purchased an additional 13,005 bitcoins for ~$489 million in cash at an average price of ~$37,617 per bitcoin. As of 6/21/21 we #hodl ~105,085 bitcoins acquired for ~$2.741 billion at an average price of ~$26,080 per bitcoin. $MSTRhttps://t.co/gLfnOxZEZc
— Michael Saylor (@michael_saylor) June 21, 2021
With the price of bitcoin now hovering between $28,000 and $34,000, Microstrategy may soon find itself underwater if the bitcoin price plunges below the $26,000 level. Saylor is now at a point of no return and he’s not planning to sell any of the company’s bitcoin investment. In this March 2021 video, Michael Saylor said:
“Once you know how it all ends, the only use of time is…how do I buy more bitcoin? But take all your money and buy bitcoin. Then take all your time, figure out how to borrow more money to buy more bitcoin. Then take all your time and figure out what you can sell to buy bitcoin. And if you absolutely love the thing, that you don’t want to sell it, go mortgage your house and buy bitcoin with it. And if you’ve got a business that you love because your family works for the business and it’s in your family for 37 years, and you can’t bear to sell it, mortgage it, finance it, and convert the proceeds into the hardest money on earth, which is bitcoin.”
Saylor is cringe, but at least he’s a bull. We must stand with him, he’s all we got pic.twitter.com/yRs8Wzl7wc
— stockmart(3,3) (@stockmart_) June 8, 2021