In a significant move highlighting its aggressive Bitcoin acquisition strategy, Strategy, formerly known as MicroStrategy, has purchased nearly $1 billion worth of Bitcoin for the second consecutive week. Last week, the firm acquired 10,645 Bitcoin at a total cost of $980.3 million, translating to an average price of $92,098 per coin. This purchase follows closely on the heels of a previous acquisition of 10,624 Bitcoin the week before, which cost the company $963 million.
As a result of these latest transactions, Strategy now boasts a total holding of 671,268 Bitcoin, with an overall investment of approximately $50.33 billion. Given Bitcoin’s current market price of around $89,462, the firm’s holdings are valued at around $60 billion.
To finance its recent purchases, Strategy raised $989 million through stock sales last week. This included approximately $882 million through its Class A common stock (MSTR) and roughly $82 million via its Series A Perpetual Stride Preferred Stock (STRD). Notably, this resurgence in buying comes after a period of slowed acquisitions, making last week’s purchase the firm’s largest weekly haul since late July.
Despite the aggressive buying, Strategy’s stock has faced significant challenges, plummeting 53% over the past six months. The stock closed at $176 last Friday, representing a 21% decline in just the past month. Meanwhile, Bitcoin itself has seen a decrease of around 29% since reaching a peak of over $126,000 in early October; it is down roughly 7% over the past 30 days.
In an effort to sustain operations during market fluctuations, Strategy established a $1.4 billion cash reserve earlier this month. This fund is intended to support dividend payments and potentially avert the need to sell any Bitcoin holdings during downturns, although executives have acknowledged that selling may still be necessary.
Recent remarks from analysts at Cantor Fitzgerald suggested that concerns surrounding Strategy’s Bitcoin buying methodology are misguided. They dismissed fears that the company was not acquiring Bitcoin during the recent price dip as unfounded. However, multiple analysts have adjusted their price targets, largely motivated by fears of Strategy’s potential exclusion from MSCI indices—a development they perceive as a bearish signal.
In a proactive stance, the firm has reached out to MSCI in a public letter, arguing that such exclusions could represent a “national security” threat and contravene President Trump’s pro-crypto agenda, emphasizing the importance of including crypto treasury firms in relevant indices.
