MicroStrategy’s Bitcoin Pile Dwarfs Most S&P 500 Cash Holdings

(Bloomberg) -- MicroStrategy Inc.’s Bitcoin holdings dwarf the traditional corporate treasuries of most members of the S&P 500 Index after its latest purchase swelled the value of the digital assets in its coffers to over $5 billion.

The enterprise software provider, which made Bitcoin purchases an official corporate strategy a year ago, announced Monday that it bought an additional 5,050 Bitcoins for about $242.9 million, raising the value of its 114,042 coin hoard to about $5.3 billion. That’s more than the amount of cash currently held by 80% of the non-financial companies in the S&P 500, including such bellwethers as Starbucks Corp., Verizon Communications Inc. and Home Depot Inc.

The company’s outstanding common shares are worth about $6.5 billion and it holds around $56.4 million in cash. Shares of MicroStrategy have surged more than 300% in the past year, mirroring the gains in Bitcoin. The stock fell 4.1% to $616.33 as of 2:56 p.m. in New York. Bitcoin gained 3% to $46,525.

©2021 Bloomberg L.P.