MicroStrategy Wavers After Purchase of 262 Bitcoins for $15M

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MicroStrategy lifted its bitcoin holdings by 0.3%, buying 262 of the digital assets for an average $57,146 each.

MicroStrategy  (MSTR) – Get Report shares were volatile on Friday after the company disclosed it spent $15 million to buy 262 bitcoins, an average $57,146 per coin including fees. 

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Shares of MicroStrategy at last check were off 0.8% at $797.

MicroStrategy now owns about 91,326 bitcoins, which it bought for $2.21 billion, or an average $24,214 per bitcoin. 

Bitcoin at last check was trading up 2% at $57,467, according to CoinDesk. Based on that price, Micro’s bitcoin holdings total about $5.25 billion. 

The company said in February that it was issuing $600 million in bonds to buy more bitcoin. 

The company said that as of Feb. 8 it possessed 71,079 bitcoin at an average purchase price of $16,109.

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Then on Feb. 24 the company said it bought 19,452 bitcoins for $1.03 billion, boosting the business-intelligence provider’s emphasis on the cryptocurrency.

The Tysons Corner, Va., company said it purchased the digital asset for cash at an average price of about $52,765 per bitcoin, including fees and expenses.https://ac7bd761fe21aa96dce0b391accca409.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html

That deal brought its holdings to 90,531 bitcoins. And the company has made other purchases as well.

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“The company remains focused on our two corporate strategies of growing our enterprise analytics software business and acquiring and holding bitcoin,” Chief Executive Michael Saylor said in a statement at the time.

“Our belief is that bitcoin, as the world’s most widely adopted cryptocurrency, can serve as a dependable store of value.”

MicroStrategy will keep buying bitcoin with excess cash and may again issue debt or equity to purchase more, he said.

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In other crypto news, Binance, the world’s largest cryptocurrency exchange, faces an investigation by the Commodity Futures Trading Commission, a media report says.

At issue is whether Binance permitted Americans to make forbidden derivatives trades, as the firm isn’t registered with the CFTC, Bloomberg News reported.

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