Shares of MicroStrategy (MSTR) rose up to 7% Monday following the company’s latest Bitcoin purchase. The firm acquired 4,871 Bitcoin for approximately $330 million at an average price of $67,718 per coin, bringing its total holdings to 766,970 BTC. This buying activity contrasted with the company’s reported first-quarter results, which included a $14.46 billion unrealized loss on its digital asset holdings.
MicroStrategy continues to aggressively accumulate Bitcoin, purchasing 4,871 BTC for approximately $329.9 million according to a new filing. The purchases were made at an average price of $67,718 per coin, below the company’s overall average acquisition price of $75,644.
This latest acquisition brings MicroStrategy’s total holdings to 766,970 BTC, acquired for a total cost of around $58 billion. The company funded the purchase overwhelmingly with proceeds from its variable-rate preferred share, STRC, having issued $227 million worth of that product.
In its first-quarter financial results, the company reported a $14.46 billion unrealized loss on digital assets and a $2.42 billion deferred tax benefit. MicroStrategy also recorded a $1.73 billion deferred tax asset related to those unrealized losses, which was offset by a corresponding valuation allowance.
“Because the fair value of Strategy’s Bitcoin holdings is below its cost basis, Strategy expects to establish an additional valuation allowance of $0.5 billion against these deferred tax assets,” the company said in its release. Despite Monday’s climb, MicroStrategy stock remains down 4.4% over the last month and 16% year-to-date.
Before Monday’s opening bell, MicroStrategy shares were set to fall 2.4% to around $199 according to Yahoo Finance. Analyst price targets for the stock currently range from $185 to $705, compared to a recent market price of $127.
