MicroStrategy resumes bitcoin buying, but prices keep falling
By Tomi KilgoreSoftware company has spent more than $18 billion in past couple months to bulk up its bitcoin holding, at shareholders expenseShares of MicroStrategy Inc. slumped again on Monday, after the software company and cryptocurrency play disclosed that it resumed bitcoin purchases at prices well above current levels.The company continued to lean on shareholders to fund the purchases, as it used the $243 million raised through the sale of common stock.The stock (MSTR) dropped 3.3% in afternoon trading and has tumbled 16.4% amid a four-session losing streak. At the same time, bitcoin (BTCUSD) (BTCUSD) was down 2.7% and has shed 10.1% over the past four days.MicroStrategy said that between Jan. 6 and Jan. 12, it bought about 2,530 coins at an average price of $95,972 per bitcoin, which is 4.5% above current levels.At the same time, the company said it raised $243 million through the sale of another 710,425 common shares to pay for the bitcoin purchases.Read: MicroStrategy shareholders continue to shoulder the cost of more bitcoin buys.The disclosure shows that MicroStrategy took a break from buying bitcoin between Jan. 1 and Jan. 5. Prior to that, the company's disclosures showed that it was buying bitcoin between Oct. 31 and Dec. 31.On Oct. 30, the company announced a plan to sell up to $21 billion worth of stock, and $21 billion of convertible debt, to buy more bitcoin.Since Oct. 31, the company has spent $18.3 billion to buy 197,780 bitcoin, at an average price of $92,565 per bitcoin, which is just 0.8% above current levels.The stock has dropped 33.1% since it closed at a record $473.83, but was still 39.1% above where it closed the day before Donald Trump's election win.Read more about why Trump is seen as favorable for cryptocurrency markets.Also read: What the big 'key reversal' pattern in MicroStrategy's stock chart could mean.MicroStrategy said that as of the Jan. 12 close, the company owned about 450,000 bitcoin, which were acquired for about $28.2 billion at an average price of approximately $62,691 per bitcoin.At current prices, that holding would be valued at $41.34 billion.The company also said as of Jan. 12, about $6.53 billion remained in its plan to issue and sell up to $21 billion worth of common stock.MicroStrategy shares have soared 49.1% over the past three months, while bitcoin has hiked up 47.3% and the S&P 500 index SPX has been little changed.-Tomi KilgoreThis 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.