Strategy (MSTR), renowned as the largest publicly traded company with significant bitcoin holdings, has made headlines once again by executing substantial acquisitions of the cryptocurrency. Over the past week, MSTR acquired 10,624 bitcoins at a total cost of approximately $962.7 million, translating to an average purchase price of around $90,615 per coin. This latest acquisition signals a strategic pivot back to larger purchases after a period of smaller transactions, influenced by unfavorable market conditions.
The funding for this notable purchase primarily stemmed from the sale of $928.1 million worth of common stock. Additionally, the company raised $34.9 million through the sale of STRD preferred stock. Following these transactions, MSTR’s overall bitcoin holdings have reached 660,624 coins, with the cumulative investment amounting to $49.35 billion, reflecting an average acquisition cost of $74,696 per bitcoin.
In the wider market, the price of bitcoin saw a 3% increase over the past 24 hours, reaching $94,000. MSTR had previously experienced a significant drop in share value, hitting a low of approximately $155 on December 1. This decline was part of a broader sell-off affecting the cryptocurrency sector, which spurred market volatility. However, MSTR’s shares have rebounded slightly, showing a 2.1% increase to $182.74 in premarket trading, even though they remain over 50% lower compared to six months ago.
For several months, MSTR has consistently added bitcoin to its portfolio, albeit with smaller purchases due to tightening financial conditions. Despite its plummeting stock price, the company has been proactive in raising capital, amassing nearly $2 billion two weeks ago to bolster its cash reserves for preferred dividends and recently securing another $1 billion for further bitcoin acquisitions.
Executive Chairman Michael Saylor is currently participating in the BTC Conference in Abu Dhabi, where he is engaging with various investment entities, including sovereign wealth funds, banks, family offices, and hedge funds. His ongoing efforts highlight MSTR’s commitment to expanding its bitcoin strategy while navigating the complexities of the cryptocurrency market.
