Business intelligence firm MicroStrategy has purchased an additional $1.1 billion worth of Bitcoin, according to a Monday announcement. This is the company's 12th consecutive weekly purchase.
This time, the company's average purchasing price was $105,596, the highest level to date.
The company's total Bitcoin holdings have now reached 471,107 (nearly $47 billion at current prices).
MicroStrategy's average buying price now stands at $64,511 following the most recent purchase.
The company has been buying Bitcoin since August 2020, becoming one of its largest holders.
MSTR stock slips by 6%
MicroStrategy's stock (MSTR) is down by nearly 6% in premarket trading despite the announcement.
Bitcoin is currently changing hands at $99,103 after the cryptocurrency plunged by more than 5% over the past 24 hours.
Alex DovbnyaThe crypto market is under severe pressure after DeepSeek, an obscure Chinese AI startup, wreaked havoc on major tech stocks by releasing a highly affordable and open-source model that might reduce demand for large GPU clusters.
The shares of Nvidia (NVDA) are down as much as 13% in premarket trading. Tech giant Microsoft (MSFT), which holds a significant stake in OpenAI, has also plunged by nearly 7%.
The STRK offering
In addition to the Bitcoin purchase, MicroStrategy also announced its $250 million preferred stock offering called STRK.
The proceeds from this latest offering will be used for making more Bitcoin purchases in the future.
"The Strike offering is amazingly good for both MSTR and BTC. It's amazing for BTC because it gives Saylor a way to easily buy 50 Billion in BTC in the next 12 months, assuming there is appetite. As STRK becomes more liquid, the appetite will increase," analyst Fred Krueger said on social media.
Dan Burgin
Vladislav Sopov