MicroStrategy has spent $2.7B on buying bitcoin over current prices

Michael Saylor has lost $105 million on his latest purchase of bitcoin for MicroStrategy. As usual, the CEO issued convertible debt — loans that may convert to equity and dilute prior shareholders — to purchase 11,931 bitcoins on June 20, 2024.

On that date, MicroStrategy purchased bitcoin at $65,883 apiece. Today, each of those coins is worth just $57,000 — a 13.5% decline in less than three weeks.

Saylor’s latest bitcoin buy has lost $105 million since June 20.

June 20th was not Saylor’s only ill-timed purchase. Since the leverage-hungry CEO started his debt-for-bitcoin spree, MicroStrategy has purchased bitcoin above current prices nine times.

  • March 12, 2021: $15 million at $57,146 per bitcoin
  • April 5, 2021: $15 million at $59,339
  • May 13, 2021: $15 million at $55,387
  • November 29, 2021: $414.4 million at $59,187
  • December 9, 2021: $82.4 million at $57,477
  • March 11, 2024: $821.7 million at $68,477
  • March 19, 2024: $623 million at $67,382
  • April 29, 2024: $7.8 million at $63,934
  • June 20, 2024: $786 million at $65,883

Although those nine purchases — totaling somewhere in the region of $2.7 billion — have lost the company hundreds of millions of dollars, Saylor’s overall strategy has been profitable. Since August 2020, MicroStrategy’s bitcoin has gained approximately $4 billion. The company’s all-time blended cost basis is $36,990 — far below today’s bitcoin price.

Minutes after issuing $800M in debt, MicroStrategy bought $786M of bitcoin.

Read more: Michael Saylor dumps quarter billion worth of MSTR while hyping bitcoin

Even with no bitcoin, Michael Saylor is cushioned

Although Saylor certainly has significant equity exposure to MicroStrategy, he has safely insulated his personal fortune from the company’s growing debts. Even if bitcoin goes to $0 and bankrupts MicroStrategy, Saylor would remain a comfortable multi-millionaire.

Saylor has sold hundreds of millions of dollars worth of MicroStrategy stock since the company started buying bitcoin. Forbes estimates his personal net worth exceeds $4 billion — ranking among the wealthiest 1,000 people in the world.

Primarily by exercising options awards, Saylor is receiving on average tens of millions of dollars in monthly compensation for running MicroStrategy. The company’s primary operation is issuing debt to buy bitcoin.

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