MicroStrategy is still loading up on bitcoin, but the pace of buying is slowing

By Tomi Kilgore MicroStrategy has spent $20.5 billion to buy bitcoin in less than three months, or nearly half what it planned to spend over the next three years MicroStrategy Inc. continues to look to buy bitcoin every day, and has only taken one five-day break in the past three months, but the pace of the buying has slowed while prices paid have generally increased. The purchases over the past week were made at the highest average prices, above $105,000 per coin, since it paid more than $106,000 per bitcoin during the week ending Dec. 22. After the latest purchases, the software company (MSTR) and de facto bitcoin play has spent $20.5 billion to buy bitcoin (BTCUSD) (BTCUSD) since the end of October, when it announced its three-year plan to raise $42 billion through equity sales and debt issuance to pay for bitcoin purchases. Read: MicroStrategy shareholders continue to shoulder the cost of more bitcoin buys. Also read: MicroStrategy explains why bitcoin is better than stocks, bonds or gold. It's no wonder the pace of buying has slowed. Basically, in a little less than three months, the company has already spent nearly half of its three-year plan. The stock dropped 5% in afternoon trading on Monday. It has slid 15.3% amid a five-day losing streak, which would be the longest such streak since the five-day stretch that ended July 5, 2024. Meanwhile, the price of bitcoin fell 3.2% to $99,681 in recent trading. The company disclosed early Monday that between Jan. 21 and Jan. 26, it raised $1.1 billion through the sale of 2.77 million shares, and used that money to buy 10,107 bitcoins at an average price of $105,596 per bitcoin. Since the $42 billion capital plan was announced on Oct. 30, the company said it was buying bitcoin every day from Oct. 31 through Dec. 31. After taking a bit of a break from Jan. 1 through Jan. 5, it resumed buying every day through Jan. 26. During that time, MicroStrategy has spent $20.49 billion to acquire 218,887 bitcoins at a weighted average price of about $93,600 per bitcoin. At current prices, the number of bitcoin purchased would be worth $21.82 billion. The purchases include 149,880 bitcoin from Oct. 31 to Dec. 1 for $13.52 billion, at an average price of $90,231, and the spending of $4.54 billion from Dec. 2 to Dec. 31 to buy 45,370 bitcoin at an average price of $100,082 each. From Jan. 6 through Jan. 26, the company bought 23,637 bitcoin for $2.42 billion, at an average price of $102,516. In total, the company owned 471,107 bitcoin as of Jan. 26 that it acquired for $30.4 billion at an average price of $64,511 each. That holding would be worth $46.96 billion at current prices. Since Oct. 30, MicroStrategy's stock has rallied 35.8%, but is trading 29.1% below its Nov. 20 record close of $473.83. Don't miss: What the big 'key reversal' pattern in MicroStrategy's stock chart could mean. In comparison, bitcoin has run up 37.7% since Oct. 30, while the SPDR S&P Software and Services ETF XSW, of which MicroStrategy's stock is a component, has advanced 12.2% and the S&P 500 index SPX has tacked on 3%. -Tomi Kilgore This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.