MSTR Stock Rebounds After Market Crash As MicroStrategy Failed To Purchase Bitcoin Last Week

In a significant development, MicroStrategy’s MSTR stock price has rebounded following the last week’s market crash. This follows the platform’s failure to make new Bitcoin purchases over the past week. In addition,  MicroStrategy, now rebranded as Strategy, has not sold any shares, a typical precursor to its BTC buys. As a result, the software company still holds 499,096 BTC, with the 500k BTC milestone yet to be hit.

MicroStrategy Did Not Make Any Bitcoin Purchase Last Week

In an SEC filing, MicroStrategy revealed that it made no Bitcoin purchases between February 24 and March 2 last week. The company also revealed that it did not sell any shares of class A common stock under its at-the-market equity offering program.

It is worth mentioning that Strategy acquired 20,356 BTC for $1.99B at $97,514 per BTC two weeks ago. This came following a $2B zero-coupon convertible notes offering, in which it was able to raise the funds for this BTC purchase.

Meanwhile, following its failure to buy any Bitcoin last week, MicroStrategy still holds 499,096 BTC, which it acquired for $33.1 billion at an average price of $66,357 per BTC. Strategy remains the public company with the largest Bitcoin holdings, well ahead of MARA holdings, which is second on the list.

The company’s failure to buy any BTC last week is also notable considering that the Bitcoin price dropped below $80,000 last week following a major crypto crash. As such, the company didn’t take advantage of a major dip which could have lowered its average cost price.

MSTR Stock Recovers

MicroStrategy’s stock has crashed last week following the Bitcoin price decline, as both assets share a positive correlation. The MSTR stock price has now recovered following BTC’s rebound above $90,000 over the weekend.

Nasdaq data shows that the stock price is up over 3.72% in premarket, trading at around $285. MSTR closed last week at around $255 following the Bitcoin price crash. However, following last week’s crash, MSTR now boasts a year-to-date (YTD) loss of over 11%.

VanECK’s chief also revealed that MicroStrategy’s Bitcoin premium has dropped back to April 2024, which may be something for market participants to keep an eye on.