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MicroStrategy Buys Bitcoin, Sells Its Own Stock

MicroStrategy said it acquired $420 million worth of bitcoin between July 1 and Sept. 12 and dumped $400 million of its own stock then.
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MicroStrategy  (MSTR) - Get MicroStrategy Incorporated Class A Report shares dropped Tuesday, after the data analytics company reported that it bought Bitcoin in recent months, while selling its own stock.

In an SEC filing Monday, MicroStrategy said it acquired $420 million worth of bitcoin between July 1 and Sept. 12. Meanwhile, it dumped $400 million of its own stock during that period.

The company’s stock sank 4% to $618.43 in recent trading.

It purchased 8,957 bitcoin at an average price of $46,875 between July 1 and Sept. 12. Last month, Microstrategy said it bought $177 million bitcoin between July 1 and Aug. 23, purchasing 3,907 bitcoins for an average price of $45,294.

Microstrategy said Monday that it now possesses 114,042 bitcoins, which it purchased for $3.16 billion, implying an average price of $27,713 per bitcoin. MicroStrategy’s stash is now worth $5.3 billion, with Bitcoin trading at $46,501.

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Some analysts argue the company is more of a Bitcoin play than a data analytics play.

As for its stock, MicroStrategy said it issued and sold 555,179 shares at an average price of $727.64 between July 1 and Sept. 12.

Last month, it said it sold $177.5 million of stock between July 1 and Aug. 23--238,053 shares at an average price of $753.21.

Last week, as El Salvador adopted bitcoin as legal tender, the central bank chiefs of Mexico and Sweden spoke up as doubters of the cryptocurrency.

Bitcoin represents more a vehicle for barter than a real currency, Bank of Mexico Gov. Alejandro Diaz de Leon said, according to Reuters.