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Microstrategy (NASDAQ:MSTR) stock is in the news on Tuesday after artificial intelligence (AIThe data analytics company operated by ) announced that it has purchased more Bitcoin (BTC USD).
This is what MicoStrategy saw Add another 9,245 tokens of BTC to its holdings. The company currently holds around 214,246 BTC with a current value of around $13.5 billion. To date, $7.53 billion has been spent on Bitcoin, with the average price paid being $35,160 per token.
MicroStrategy purchased these new tokens for $623 million, which is equivalent to about $67,400 each. The company spent $592.3 million on its latest convertible note offering and $30.7 million in cash for BTC.
How this affects MSTR stock
MSTR stock fell on Tuesday as the price of Bitcoin fell to $62,899.20 per token as of this writing. Considering the company paid more in its recent BTC purchase, it makes sense that the cryptocurrency’s price drop would drag MicroStrategy’s shares down with it.
This is also leading to heavy trading in MSTR stock today. As of this writing, more than 2.3 million shares have been traded. The company’s daily average trading volume is lower, at about 2 million shares.
MSTR stock was down 12.8% as of Tuesday morning. However, shares are still up 98.3% year-to-date.
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At the time of publication, William White did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.