MicroStrategy Just Bought More Bitcoin. The Stock Is Up. — Barrons.com
By Elsa OhlenMicroStrategy stock turned higher early Monday as markets recovered from Friday's dip and the world's largest corporate holder of Bitcoin bought more of the "digital gold."The Bitcoin buyer, which does business as Strategy, said Monday that it bought 21,021 Bitcoins for $2.46 billion, or an average purchase price of $117,256, according to a filing with the Securities and Exchange Commission. MicroStrategy now holds 628,791 Bitcoins, worth about $72 billion as of current prices.Shares were up 5.1% to $385.31 in early trading Monday, while the S&P 500 and Nasdaq Composite rose 1.2% and 1.7%, respectively.MicroStrategy stock is clawing back some heavy losses Friday after it announced changes to its framework for issuing equity. From now on, it will issue only common shares to buy Bitcoin if its enterprise value divided by the value of its Bitcoin holdings is above 2.5 times. That ratio is currently around 1.7, according to its website.Bitcoin was slightly higher early Monday, up 0.6% over the past 24 hours, according to CoinDesk data.Write to Elsa Ohlen at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.