MicroStrategy Inc (NASDAQ:MSTR) plans to persist in building its Bitcoin position and has no intention of disposing of its holdings, CEO Michael Saylor told CNBC on Tuesday.
"Strategy is not going to be selling Bitcoin," Saylor said, and added that the firm "will be buying Bitcoin every quarter." He also told the network that any "concern that Strategy will be selling is unfounded."
The remarks come after MicroStrategy completed an at-the-market stock sale earlier this month. Between February 2 and February 8, the company sold 616,715 shares of its Class A common stock under its at-the-market offering program, generating $89.5 million in net proceeds.
MicroStrategy reports it directed those proceeds into additional bitcoin purchases during the same period. The company acquired 1,142 bitcoin for about $90 million, inclusive of fees and expenses, at an average price of $78,815 per bitcoin.
According to company disclosures as of February 8, MicroStrategy’s total bitcoin holdings stood at 714,644 units with a cumulative purchase price of $54.35 billion. That total represents an average acquisition cost of $76,056 per bitcoin, which the company filing notes is below the current price of $69,000.
Saylor’s comments reiterate MicroStrategy’s continued commitment to using equity-market activity as one source of funding for incremental Bitcoin acquisitions and to maintaining its existing holdings rather than liquidating them.
Context and implications
The company’s reaffirmation that it will keep buying bitcoin each quarter and will not sell its accumulated holdings is likely intended to address investor questions raised by the recent stock offering. MicroStrategy’s approach links its capital markets activity directly to its cryptocurrency accumulation strategy.
What the company disclosed
- Sold 616,715 Class A shares through an at-the-market program between February 2 and February 8.
- Net proceeds from that sale were $89.5 million.
- Used those proceeds to buy 1,142 bitcoin for roughly $90 million, including fees, at an average of $78,815 per bitcoin during the same period.
- On February 8 the company reported holding 714,644 bitcoin with a total purchase price of $54.35 billion and an average acquisition cost of $76,056 per bitcoin.
Market reaction and next steps
In the interview, Saylor sought to dispel concerns that the company might be a seller of its bitcoin holdings. He emphasized the company’s intention to continue quarterly purchases as part of its stated strategy.
"Strategy is not going to be selling Bitcoin," Saylor said. "We will be buying Bitcoin every quarter. Concern that Strategy will be selling is unfounded."