MSTR Stock Down 10%, MicroStrategy Buys 271 More Bitcoin at $55,387 Bringing Its Total Coins to 91,850 BTC


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MSTR Stock Down 10%, MicroStrategy Buys 271 More Bitcoin at $55,387 Bringing Its Total Coins to 91,850 BTC

Michael Saylor, the Chairman & CEO of MicroStrategy Inc (NASDAQ: MSTR), yesterday announced the company purchased 271 Bitcoin (BTC) units at an average price of $55,387. As a result, the company has amassed 91,850 units of Bitcoins, approximately 0.437% of the circulating supply.

Meanwhile, the company boasts of over $2.241 billion in Bitcoin and anticipates holding it on a long-term basis. Previously, Saylor said that he expects Bitcoin to flip Gold in market capitalization and later go for the global monetary and debt market. Additionally, he expects Bitcoin’s volatility to significantly decline once the asset reaches $100 trillion market capitalization, which will earn it a proper store of value that is globally accepted.

The announcement coincided with a crypto market correction that was triggered by Tesla’s Elon Musk announced that the company will not accept Bitcoin payments due to environmental concerns.

MicroStrategy filed a Form 8-k with the United States Securities and Exchange Commission (SEC) regarding the 271 Bitcoin purchase on May 13, 2021.

MicroStrategy and Its BTC Holdings

After closing yesterday trading at $488.08, down 9.93%, MSTR stocks were trading around $500 at the time of reporting. Notably, MSTR stocks are up approximately 322.29% in the past twelve months, and added around 25.62% year-to-date according to market data analytics provided by MarketWatch. However, they are down approximately 52.81%, 29.63%, and 21.34% in the past three months, one month and five days respectively through Thursday.

There has been a direct correlation between MSTR stocks and Bitcoin market price in the past few months thanks to the significant exposure. In the past 52 weeks, MSTR stocks have ranged between $110.24 and $1,315.00. The company has a reported market valuation of approximately $5.28 billion with 7.62 million outstanding shares.

Saylor founded MicroStrategy back in 1989 as a business intelligence firm. Over the years, the firm has delivered its services to individuals, teams, and organizations. With its vast cloud information, the firm is capable of making informed decisions that have proven profitable in the past.

Its long term involvement in Bitcoin indicates the cryptocurrency market has a notable moment and will likely deliver profits on a long term basis.

However, the top cryptocurrency investors have in the recent past had differences with blockchain network infrastructure.

With the main topic surrounding energy consumption, environmental impact, and economic impact. “We know that replacing gold as a store of value will help the environment,” said Mark Cuban, owner of the Dallas Mavericks NBA team and a crypto bull.

Bitcoin and the entire altcoin market had rebounded from yesterday’s dip.

MSTR Stock Down 10%, MicroStrategy Buys 271 More Bitcoin at $55,387 Bringing Its Total Coins to 91,850 BTC

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