Business intelligence firm MicroStrategy has purchased an additional 1,142 Bitcoins for its corporate treasury, bringing its total holdings to 714,644 BTC. The company funded the $89.5 million purchase through sales of its Class A stock. This acquisition continues MicroStrategy’s aggressive accumulation strategy despite the company’s balance sheet remaining underwater on its total Bitcoin investment, which has an average cost of $76,056 per coin.
MicroStrategy continued its Bitcoin accumulation strategy by purchasing 1,142 BTC between February 2 and 8. The company disclosed in an 8-K filing the average purchase price was $78,815 per coin.
The purchase was funded through an at-the-market equity offering that raised approximately $89.5 million. Executive Chairman Michael Saylor had hinted at the move on social media, captioning a portfolio tracker with “Orange Dots Matter.”
The acquisition followed a period of significant balance sheet loss for the company as Bitcoin’s price declined. Some market participants, like crypto trader Satoshi Flipper, publicly questioned the timing of the buy.
During a recent earnings call, CEO Phong Le addressed the company’s financial leverage. “If the price of Bitcoin were to fall to 8,000 and stay at that price for five or six years, then [MicroStrategy] would face challenges,” he stated, while noting the firm remains within its risk limits.
Analyst opinions on the strategy are mixed, with TD Cowen noting its reinforced lead as a corporate Bitcoin holder. Bernstein analysts highlighted that MicroStrategy has no significant debt maturities until 2028.
Shares of MSTR fell more than 5% in pre-market trading Monday according to Yahoo Finance data. Bitcoin concurrently struggled to maintain a price above $69,000.
