By Mackenzie Tatananni
MicroStrategy, the world's largest corporate holder of Bitcoin, disclosed Monday it had purchased even more of the cryptocurrency, bringing its total holdings to nearly 570,000 tokens.
The company doing business as Strategy said it had snapped up 13,390 Bitcoins for $1.34 billion in cash, bringing its total holdings to 568,840 Bitcoins. Based on the crypto's current price, Strategy's holdings have a market value of around $59 billion.
Benchmark Equity Research analyst Mark Palmer noted Monday that the company's Bitcoin yield, or the change in the ratio of its holdings to its total assumed shares, was 15.5% for the period between Jan. 1 and May 11.
Strategy sells equity, debt, and preferred stock to fund purchases of the cryptocurrency. The company announced earlier this month that it had exhausted its 2024 at-the-market common stock offering and was planning more sales through a new $21 billion offering.
Shares gained Monday as the broader market surged on an announcement that the U.S. would temporarily reduce its tariffs on China to 30% from 145%. However, Strategy pared those gains to fall 2.3% $406.30. The S&P 500 and tech-heavy Nasdaq Composite were up 2.6% and 3.5%, respectively.
Strategy's performance is closely tied to price of the world's largest crypto. While Bitcoin is frequently touted as a hedge against inflation, including by Strategy Chairman Michael Saylor, it's less straightforward than that. The digital currency is subject to bouts of market volatility, which can cause its price to rise or fall sharply.
While the price of Bitcoin climbed soon after the latest tariffs announcement, the initial excitement appeared to wear off. The price fell 0.7% over the past 24 hours to $103,782, according to CoinDesk.
With Bitcoin hovering below its all-time high of $109,000, records will likely be harder to come by. The sudden drop in price could also be a sign of traders bracing for the next unexpected policy announcement.
It's worth noting the latest tariff agreementis only a temporary resolution. For now, sky-high taxes on Chinese imports are set to go back into effect this August.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
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May 12, 2025 10:52 ET (14:52 GMT)
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