MicroStrategy stock rises as the company buys more bitcoins for $ 49,000

U.S. firm MicroStrategy announced that it has spent an additional $ 94 million on Bitcoin (BTC) to help keep its balance sheet, bringing the company’s total equity holdings to 124,391 BTC ($ 5.9 billion).

MicroStrategy buys more bitcoins for $ 49,000

MicroStrategy has “acquired” again, adding 1,914 Bitcoins at an average price of $ 49,229 / BTC. The company currently holds 124,391 bitcoins, the largest amount of corporate bitcoin holdings besides trusts and exchange traded funds (ETFs).

MicroStrategy said in a filing with the U.S. Securities and Exchange Commission (SEC) on Thursday that it purchased nearly two thousand new bitcoins for $ 94.2 million between December 9 and 29.

“MicroStrategy bought an additional 1,914 bitcoins for ~ $ 94.2 million in cash at an average price of $ 49,229 per bitcoin. On December 29th, 21 we bought #hodl ~ 124,391 Bitcoins back for ~ 3.75 billion USD at an average price of ~ 30,159 USD / Bitcoin. “, MicroStrategy CEO Michael Saylor tweeted Thursday to announce the purchase.

This purchase was funded in full through the sale of MicroStrategy’s Class A common stock during the same period. The company sold a total of 167,759 shares under a free trade agreement in June at an average price of $ 565.78 per share.

MicroStrategy’s bitcoin buying strategies are very popular these days. The company uses new BTC every time the market falls to ensure cheap bitcoins at a discounted price.

The acquisition follows two significant purchases last month. On November 29, MicroStrategy announced that it had bought a whopping $ 400 million worth of Bitcoin, with a total of 7,000 BTC added to its holdings shortly after the market collapsed. Less than two weeks later, the software company added 1,434 bitcoins to its inventory in a $ 82 million purchase.

MicroStrategy shares rise as the company buys more bitcoins for $ 49,000

As is common with MicroStrategy’s bitcoin purchases, CEO Michael Saylor shared the move on Twitter.

Saylor said: “MicroStrategy bought an additional 1,914 bitcoins for ~ $ 94.2 million in cash at an average price of $ 49,229 / bitcoin.”

Following the announcement, MicroStrategy’s shares rose slightly and are now 1.04% higher for the day. Gains come after the stock traded lower for most of November and December, losing nearly 37% since its November 9 high.

The announcement comes less than a month after Saylor last said his company bought more BTC.

On December 9, the bitcoin bull said the company had bought 1,434 bitcoins – slightly less than yesterday’s purchases in both BTC and USD. The coins were subsequently purchased at an average price of $ 57,477, much higher than today’s purchase price.

The latest announcement from Saylor was – as always – welcomed by the Bitcoin community. However, some have wondered why the company’s average price is above $ 49,000 while the current market price is between $ 46,000 and $ 47,000.

The Bitcoin market has so far not responded significantly to the purchases and sales. As of 15:38 UTC yesterday, BTC lost 1.2% in 24 hours and was trading at $ 47,404 per coin.

Join our Facebook group and Telegram group Coincu News to chat with more than 10,000 other people and share information about the crypto currency market.

Important NOTE: All content on the website is for informational purposes only and does not constitute investment advice in any way. Your money, the choice is yours.