- Strategy buys 196 BTC for $22.1 million at $113,048 per Bitcoin, raising its total BTC holdings to 640,031.
- The company funded the purchase by selling shares in MSTR, STRF, and STRD, raising a combined $116.4 million.
- Despite the downturn in Bitcoin and MSTR stock, Strategy’s co-founder hints at continued Bitcoin accumulation.
In a move that highlights its unwavering commitment to Bitcoin, Strategy, formerly known as MicroStrategy, has acquired an additional 196 BTC for $22.1 million. The purchase was made at an average price of $113,048 per Bitcoin, increasing the company’s total Bitcoin holdings to 640,031 BTC. This purchase continues Strategy’s aggressive stance on Bitcoin, despite the ongoing challenges in both the cryptocurrency and stock markets.
This acquisition marks the ninth consecutive weekly purchase of Bitcoin for Strategy. The company’s co-founder, Michael Saylor, has previously hinted at the continuation of this trend, regardless of the current market volatility. In a recent X post, Saylor simply stated, “Always ₿e Stacking,” signaling that more Bitcoin purchases are likely in the pipeline. Strategy has made these acquisitions amidst the decline in Bitcoin prices and the underperformance of its own stock, MSTR.
Funding the Bitcoin Purchase
To fund this purchase, Strategy sold a combination of MSTR, STRF, and STRD shares, raising a total of $116.4 million from the sales. However, only $22 million of the proceeds were allocated for Bitcoin acquisitions. The company had previously faced criticism for selling stock to fund these Bitcoin purchases, especially as Bitcoin’s price and the value of MSTR stock have fluctuated. Despite these concerns, Strategy appears undeterred in its strategy to bolster its Bitcoin holdings.
Amid these Bitcoin purchases, MSTR stock has seen a decline, with its year-to-date gains now reduced to just 3%. At its peak earlier in the year, MSTR traded near $455 but has since fallen to around $314, with the latest trading hovering just above $300. The stock has been highly correlated to Bitcoin’s price movements, further reflecting the risks associated with Strategy’s dual focus on crypto and equities.
Strategic Vision Despite Market Volatility
Although the current downturn in the stock of Bitcoin and MSTR might cause some alarm, Saylor and his team seem determined to uphold their streak of buying Bitcoin. The long-term perspective of Strategy towards Bitcoin is unmistakable, as the company is ready to withstand the highs and lows of the market and become an even stronger force in the Bitcoin market.
