MicroStrategy Inc., the largest corporate buyer of Bitcoin, made the smallest purchase of the cryptocurrency in more than two years after the company's co-founder dropped his CEO title last month. The move signals a shift in focus for the company, which is now turning its attention to its digital-asset strategy.
The enterprise-software maker bought 301 Bitcoin for about $6 million, at an average price of about $19,851, the company said in a US Securities and Exchange Commission filing Tuesday. The purchases were made with excess cash. However, the aggregate purchase is already underwater, with Bitcoin trading at less than $19,000.
As of September 19, 2020, MicroStrategy and its subsidiaries held approximately 130,000 Bitcoin, which were acquired at an aggregate purchase price of approximately $3.98 billion. The average purchase price per token was approximately $30,639. Since MicroStrategy first started buying Bitcoin in 2020, the value of its aggregate holdings has dropped by approximately $1.5 billion, or around 38%.
Earlier this month, the company filed with the SEC to sell as much as $500 million in stock. The proceeds from this sale could potentially be used to buy more cryptocurrency. This move could signal that the company is bullish on the future of cryptocurrency.
On August 2, co-founder Michael Saylor gave up his role as chief executive officer to focus on the company's Bitcoin strategy. That was the same day the company reported a loss of more than $1 billion related to the second-quarter plunge in the price of the cryptocurrency. Saylor, who co-founded the company in 1989, continues to serve as executive chairman.
MicroStrategy's stock price fell by 3.5% to $199 as of 9:38 a.m. in New York. This is a 64% decline from the beginning of the year, which is roughly the same as the decline in the price of Bitcoin during the same period.
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