MicroStrategy boosts bitcoin hoard to more than 105K tokens

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MicroStrategy Inc. said Monday that it owns more than 105,000 bitcoins after spending $489 million on 13,005 additional tokens. 

Shares of the Tysons Corner, Virginia-based business intelligence provider fell as much as 9.88% before slightly paring their losses. This as bitcoin plunged by up to 11% to $31,830 a coin after China renewed its crackdown on mining of the digital currency. 

MicroStrategy’s 105,085 bitcoins cost a total of $2.74 billion, or an average of $26,080 per token. The stash was worth $3.46 billion with bitcoin trading at $32,900 a coin. 

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The company last week conducted a $500 million corporate bond offering where the proceeds were used to fund the bitcoin purchases announced on Monday. Proceeds from a separate $1 billion stock offering could also be used to purchase bitcoin. 

MicroStrategy in February held a $600 million convertible debt offering, using the proceeds to fund bitcoin purchases. 

MicroStrategy CEO Michael Saylor has been at the forefront of Corporate America’s foray into bitcoin, calling the cryptocurrency the "most secure, most reliable, most certain thing in the entire economic universe." 

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He was also instrumental in Tesla CEO Elon Musk’s decision to diversify some of his company’s cash holdings into bitcoin. 

MicroStrategy shares were up more than 50% this year, although the company is worth approximately half of its February 9 peak of $1272.94 apiece.