Microstrategy Buys $6 Million BTC in Bear Market, Stock Down 6%

The software company, Microstrategy made the news after it announced that it acquired $6 million worth of Bitcoins. This made it the largest corporate holder of the crypto, according to a U.S. Securities and Exchange Commission (SEC) filing.

However, it did not seem to provide a boost to the company’s stocks, as they dropped 6% at the opening bell Tuesday following Saylor’s purchase disclosure.

MicroStrategy (NASDAQ: MSTR) stocks dropped from $200 to $193.72. MSTR has since recovered some of the losses and is now back trading at the $200 price mark.

MSTR stock is plummeting faster than the price of the cryptocurrency, just as it surpassed bitcoin’s rise in the previous year. During one point in January, it dropped as much as 30 percent in two days.

The analytics software developer has recently taken advantage of any Bitcoin price declines to increase its holdings of the world’s most-traded cryptocurrency.

As of this writing, Bitcoin is trading at $18,880, down 6.5% in the last seven days, data from Coingecko show, Wednesday. Ethereum, the top altcoin, was also in the read, trading at $1,328, and down 16% over the last week.

MicroStrategy said earlier this month that it had entered into a deal with Cowen & Co. to sell up to $500 million in Class A common stock shares, implying that some of the proceeds will be used to purchase additional Bitcoin.

Now, with bitcoin trading at $19,138 at the time of acquisition, the company’s cryptocurrency holdings are now valued somewhat more than $2.48 billion. This represents an unrealized loss of over $1.5 billion.

Source- Bitcoinist