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MicroStrategy Purchases Additional Bitcoins Currently Holding Over 105,000 Bitcoins

MicroStrategy has announced that it has 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.

However, shares of the Virginia-based enterprise software company closed down 9.7% Monday, mirroring a similarly sized slide in the price of bitcoin. The cryptocurrency was down more than 7% to around $32,600 per token as reports surfaced that China was scaling its crackdown on bitcoin mining.

MicroStrategy said the average purchase price of its 105,085 bitcoin trove is $26,080 apiece, including fees and other expenses. The company’s holdings were worth more than $3 billion as of Monday.

MicroStrategy has in the past year gone from relative obscurity to a well-known force on Wall Street and in the crypto community, as a result of its aggressive bets on bitcoin and the preaching from Chairman and CEO Michael Saylor, who routinely touts bitcoin on Twitter has more than 1 million followers on the social media site.

In a CNBC interview last week, Michael Saylor defended the company’s crypto pursuits, which has involved debt offerings in order to buy more bitcoin. MicroStrategy also recently filed for a program to sell $1 billion worth of additional stock, proceeds from which can be used to acquire bitcoin.

“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,” he added, noting total revenue was up 10% year over year. “The bitcoin business is driving shareholder returns. I think the employees are happy. The shareholders are happy.” MicroStrategy Chairman and CEO Michael Saylor

MicroStrategy’s stock has soared since the company announced its maiden bitcoin buy before the bell on August 11. The shares have risen around 423% from its August 10 close to Friday’s closing price of $646.46.

The stock hit a 52-week high on February. 9, trading above $1,300 per share, which was its highest level since the dot-com boom.

Bitcoin’s Performance Following MicroStrategy Purchase

Bitcoin has suffered a rough trading stretch in the past two months after hitting its all-time high near $65,000 in April, around the time of Coinbase’s blockbuster direct listing.

Following the purchase, the cryptocurrency was still on a losing streak, trading at $32,965.30, a 4.01% decline as of 8.00 A.M East African Time.

Bitcoin, the world’s largest cryptocurrency by market value, is still up about 11% year to date, based on Today’s morning’s trading price.