MicroStrategy Incorporated ( MSTR ) shares are trading lower Monday after the price of Bitcoin (CRYPTO: BTC) fell below $62,000. 

The Details:

Last week, MicroStrategy ( MSTR ) announced it had acquired approximately 11,931 bitcoins for roughly $786 million in cash between April 27 and June 19 at an average price of about $65,883 per bitcoin. 

The company now holds 226,331 bitcoins, valued at more than $14.9 billion at the current market price. These were acquired at a total purchase price of around $8.33 billion, averaging approximately $36,798 per bitcoin, inclusive of fees and expenses.

Bitcoin is down by nearly 5% over the past 24 hours, and MicroStrategy ( MSTR ) shares are moving lower as bitcoin retreats. 

According to data from Benzinga Pro, shares are trading about even with the stock’s 50-day moving average of $1,423.00 and 21.39% of shares are being sold short. 

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Is MSTR A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like MicroStrategy ( MSTR )‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. MicroStrategy ( MSTR ) does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 19.77%, you'll need to buy a share of Dividend Growth Split by June 28, 2024. Once done, you can expect to receive a nominal payout of $0.10 on July 15, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on MicroStrategy ( MSTR ) will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

MSTR Price Action: According to Benzinga Pro, MicroStrategy ( MSTR ) shares are down 9.85% at $1,337.56 at the time of publication Monday.

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