MicroStrategy Drops After Buying $489 Million in Bitcoin

MicroStrategy Inc. dropped the most in a month after announcing it had spent about $489 million to buy about 13,005 Bitcoins at a price of $37,617 per Bitcoin.

The Tysons Corner, Virginia-based company, a maker of analytics software, said in a statement Monday that it now owns around 105,085 Bitcoins, worth about $2.74 billion. Bitcoin fell to a two-week low Monday accompanied by a crackdown on cryptocurrency mining in China.

MicroStrategy, founded in 1989, provides cloud-based services and app development. Under the leadership of co-founder and Chief Executive Officer Michael J. Saylor, the company has become a leading proponent of cryptocurrencies, and earlier this month offered bonds to fund the purchase of more Bitcoin. Saylor told CNBC last week that Bitcoin isn’t the only cryptocurrency that can be successful.

“I think that as the market starts to understand these things, there’s a place for everybody,” Saylor said.

MicroStrategy shares dropped almost 11% to $577 at 12:42 p.m. in New York, the biggest intraday decline since May 19. The stock had jumped 66% through Friday’s close.

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