Aug. 4 at 5:45 PM
MicroStrategy Rises After
$2.46B Bitcoin Buy; Saylor Reaffirms Strategy
MicroStrategy (MSTR) stock rose 5.2% Monday as markets rebounded and the company disclosed a
$2.46B purchase of 21,021 Bitcoins , at ~$ 117K each. It’s one of the company’s largest buys since its crypto strategy began in 2020.
As of Aug. 3, MicroStrategy holds 628,791 BTC, bought for ~
$46.1B, now worth over
$72.5B at market prices.
Chairman Michael Saylor reiterated Bitcoin is a “trading asset” short term, but a “treasury asset” long term. He emphasized discipline in future equity issuance: new common shares will only be used to buy BTC if the firm’s enterprise value is 2.5x its BTC holdings (currently ~1.7x). Preferred stock will be used in the meantime.
Shares bounced after a prior 8.8% drop tied to changes in the company’s equity issuance policy. Bitcoin rose 0.9% to
$115,310. The SPX and COMP gained 1.3% and 1.8%, respectively.
$MSTR $BTC.X
$SPX $COMP