MicroStrategy Resumes Bitcoin Buying After 10-Week Pause
MicroStrategy, a company known for its large Bitcoin holdings, has resumed buying BTC after a 10-week pause. The purchase of 4,603 BTC between August 24 and August 30 brought in $369.7 million, which is part of the company's broader strategy to accumulate more cryptocurrency.
The funds used for this acquisition were generated from the sale of 4,531,421 Class A shares, netting MicroStrategy $602.8 million. The money was allocated as follows: $369.7 million went towards buying BTC, $151.8 million bought back STRC preferred shares, $50.7 million covered STRC dividends, and the remaining $30 million went into cash reserves.
The company now holds a total of 845,050 BTC in its treasury, which was acquired for approximately $63.73 billion. The average cost basis per coin is $75,412, with the current market price hovering around $79,087. This leaves MicroStrategy's Bitcoin holding about 4.9% in profit.
However, it's worth noting that the latest purchase isn't entirely without its drawbacks. The new tranche of BTC was bought at an average price of $80,318, which is slightly above the current market price. This leaves the allocation roughly 1.5% underwater, amounting to a paper loss of around $5.7 million.