MicroStrategy Incorporated (NASDAQ: MSTR) opened more than 8% down on Monday as China ordered a freeze on crypto mining. According to Global Times, over 90% of the country’s Bitcoin mining capacity is expected to shut down.
MicroStrategy has a multi-billion-dollar stake in Bitcoin that makes it one of the largest corporate BTC investor. The business analytics company, however, remains bullish on the world’s largest digital currency.
MicroStrategy invested another $489 million in Bitcoin
In an announcement on Monday, MicroStrategy said it bought another $489 million worth of Bitcoins. Accounting for fees and expenses, roughly 13,005 BTC were purchased at an average price of about $37,617.
Including Monday’s purchase, the largest independent publicly traded business intelligence company now holds close to 105,085 bitcoins in total. The aggregate purchase price of MicroStrategy’s holding in BTC stands at approximately $2.741 billion that values each Bitcoin at about $26,080 (average purchase price), including fees and expenses. The U.S. company’s subsidiary, MacroStrategy LLC, owns about 92,079 Bitcoins.
The news came shortly after MicroStrategy filed to sell additional stock worth $1 billion. Proceeds from the share sale, the Virginia-based firm confirmed, will be used to widen its investment in BTC.
CEO Saylor’s remarks on the company’s crypto holding
MicroStrategy became a notable name in the crypto community and on Wall Street in 2020 for its sizable investments in BTC. Last week on CNBC, CEO Michael Saylor highlighted that on a year-over-year basis, the company’s total revenue was 10% up.
“We rotated our shareholder base and transformed ourselves into a company that’s able to sell enterprise software and to acquire and hold Bitcoin, and we’ve done it successfully with leverage. That has increased the power of the brand by a factor of 100. We just had our best software quarter, in the last 10 years’ last quarter. The BTC business is driving shareholder returns. I think the employees are happy. The shareholders are happy.”
MicroStrategy opened at $598 per share on Monday and is currently exchanging hands at $582 per share. This compares to its year-to-date high of $1,273 per share in early February. The stock had started the year at $425 per share.
MSTR performed massively upbeat last year with an annual gain of more than 150%. At the time of writing, MicroStrategy is valued at $5.68 billion. China’s crackdown on the crypto industry also weighed on Coinbase that was down about 4% on Monday morning.
The post MicroStrategy adds 13,005 new bitcoins to its coffers appeared first on Invezz.
from USA – Invezz https://ift.tt/2SR0AFQ
Wajeeh Khan
Click here to Join RICH DAD SUMMIT online with ROBERT KIYOSAKI - $1 Training for Passive Income: https://bit.ly/RichDadSummitWealthTraining
0 Comments