"Dead bull" MicroStrategy bought again, holding more than 100,000 Bitcoins, and its stock price fell by more than 10% at one point

MicroStrategy, a "die-hard bull" in digital currency, has bought Bitcoin again, and this purchase has also brought the company's total Bitcoin holdings to more than 100,000. Affected by the sharp drop in Bitcoin prices, MicroStrategy's latest purchase has caused it to lose more than 10%. After the news was announced, MicroStrategy's stock price once fell by more than 10%.

MicroStrategy issued a press release on its official website on Monday, saying that the company purchased an additional approximately 13,005 bitcoins for approximately $489 million in cash, with an average purchase price of $37,617 per bitcoin, including fees. As of Monday, the company held a total of approximately 105,085 bitcoins (92,079 of which were held by its subsidiary MacroStrategy LLC), and the average purchase price of all bitcoins, including fees, was $26,080 per bitcoin. However, MicroStrategy did not disclose details such as the specific time of purchase of bitcoins.

About two weeks ago, MicroStrategy also issued a statement saying that it would raise $400 million (later expanded to $500 million) through private debt issuance based on market conditions to purchase Bitcoin and other digital assets. The bond is a senior secured note for qualified institutional investors and will mature in 2028. This is not the first time MicroStrategy has issued bonds to purchase Bitcoin. As early as December 7 last year, MicroStrategy announced the issuance of $400 million in convertible bonds and invested the proceeds in Bitcoin.

According to regulatory documents submitted to the U.S. Securities and Exchange Commission (SEC) on June 14, MicroStrategy plans to issue $1 billion in shares, and the proceeds can be used to purchase Bitcoin.

It is worth noting that MicroStrategy stated in a regulatory filing disclosed to the SEC on June 7 that due to currency price fluctuations in the second quarter, it is expected to record at least US$284.5 million in Bitcoin-related impairment losses in the three months ending June 30.

After the announcement of the purchase of Bitcoin, MicroStrategy's stock price opened low and fell throughout the day, falling below the $600 mark during the day, with the intraday decline exceeding 10% several times. As of the close, MicroStrategy reported $583.67 per share, down 9.71%. Although it has recorded a 50.22% increase since the beginning of the year, the correction has exceeded 55% from the intraday high of $1,315 on February 9.

Bitcoin continued to be weak after the announcement, fluctuating roughly in the range of $32,000 to $33,000. According to CoinDesk data, as of press time, Bitcoin was at $32,505.75, down 9.20% in 24 hours. On June 21, Bitcoin once fell to $32,166 per coin, a daily drop of nearly 10%. In the afternoon of the same day, the relevant departments of the People's Bank of China interviewed some banks and payment institutions such as Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Postal Savings Bank of China, Industrial Bank and Alipay (China) Network Technology Co., Ltd. regarding the issue of banks and payment institutions providing services for virtual currency trading speculation. The relevant institutions issued an announcement that evening, prohibiting the use of bank services for virtual currency transactions.

Other major digital currencies also fell collectively within 24 hours, and the decline was greater than that of Bitcoin. According to CoinDesk data, Ethereum broke through the two barriers of $2,100 and $2,000, and was last reported at $1,941.25, down 13.43% in 24 hours; Dogecoin was reported at $0.2059, down 28.13% in 24 hours.

According to statistics from Bitcoin Home, as of press time, a total of 174,815 people had their positions liquidated in the 24 hours, with a total liquidation amount of US$951 million, of which more than 70% was concentrated in Bitcoin and Ethereum.