MicroStrategy Buys The Dip With $489 Million BTC Purchase

MicroStrategy has completed a $489 million Bitcoin purchase from the proceeds of the sale of $500 million in senior debt notes last week. 

MicroStrategy and the Big Bitcoin Bet 

The American intelligence firm added 13,000 BTC to its treasury from $489 million (after expenses) raised from corporate bonds sale to accredited investors. The average purchase price was $37,617.

The company’s most recent purchase is down 13.2% in value due to fear of a crypto trading ban in China. 

MicroStrategy is the world’s largest Bitcoin holder among publicly traded companies. It holds $105,000 BTC worth $3.4 billion at current prices. The total aggregate of MSTR’s purchase is $26,080. 

The MSTR stock is now a pseudo-Bitcoin ETF; more than 60% of its Bitcoin purchases are from the $2.1 trillion raised from stock convertible and debt notes. The MicroStrategy share price now largely relies on Bitcoin’s performance.

We may not have a Bitcoin ETF, but Microstrategy might as well be one pretty soon https://t.co/keJORJmFS9

— Travis (@travscrub10) June 14, 2021

Last week, the firm also announced a $1 billion stock sale to use the money in operations and purchase Bitcoins, on top of the $500 million debt purchase completed today.

This morning, famed macro-trader Dr. Michel J. Burry ridiculed MicroStrategy’s Bitcoin buys and the bullishness in a now-deleted tweet, appearing to mock investors for taking their cues from the company.

Burry tweeted the MicroStrategy stock ticker “MSTR” along with a YouTube link to the Metallica song, “Master of Puppets,” perhaps implying that MicroStrategy was attempting to manipulate the market by sending buy signals with its purchases.

Burry, who is famous for successfully shorting the 2007-2008 housing bubble, recently alarmed investors by tweeting about the upcoming “bubble of all bubbles” in all asset classes, including Bitcoin.

Bitcoin was last trading at $32,500 on Coinbase.