Strategy, recognized as the world’s largest corporate holder of Bitcoin, recently disclosed a significant investment of $27 million in the cryptocurrency by acquiring 220 Bitcoin at an average price of $123,500. This purchase took place just before Bitcoin experienced a notable price decline, which saw it trading between $126,000 and $110,000 last week. The timing of this acquisition aligns closely with Bitcoin’s peak price, which occurred shortly before the fall.
Despite recent volatility in the cryptocurrency market, Strategy’s investment marks its third-smallest purchase this year. Interestingly, this maneuver has raised the average cost of Bitcoin in Strategy’s extensive collection to over $74,000. Earlier in the year, the firm had made headlines with Bitcoin purchases that cumulatively amounted to as much as $2.46 billion.
Based in Tysons Corner, Virginia, Strategy now possesses a remarkable 640,250 Bitcoin, valuing the entire reserve at approximately $73 billion based on current market rates provided by CoinGecko. Typically, when the firm has raised funds through the sale of preferred shares, the resultant Bitcoin purchases have been notably smaller compared to instances where they issued common shares at a premium, thereby boosting their stockpile more significantly.
The recent acquisition was funded through sales of preferred shares, netting the company $1.7 million from STRK, $17.1 million from STRF, and $6.9 million from STRD. Some of these preferred shares come with accompanying dividend payments, introduced as a new funding mechanism this year.
On Monday, Bitcoin’s price showed some recovery, hovering around $115,000, despite being down 8% over the past week—an improvement attributed to hope for easing trade tensions between the U.S. and China. Nevertheless, altcoins have seen even steeper losses in the same period. Strategy’s stock is currently trading at approximately $304.78, indicating a slight increase since Friday; however, it has still decreased by 15% over the past five trading days.
Amidst the latest market fluctuations, U.S. President Donald Trump attempted to assuage concerns regarding China with comments on social media, while Strategy’s co-founder and Executive Chairman, Michael Saylor, took to X, dismissing fears of tariffs affecting Bitcoin.
As the landscape of Bitcoin treasury firms continues to grow in complexity, only one of them managed to outperform Bitcoin itself during the third quarter, according to Greg Cipolaro, Global Head of Research at NYDIG. A report indicated that Empery Digital exceeded Bitcoin’s 6.2% rise during that time, while Strategy faced a 20.3% drop in its stock price.
The diminishing premium of Strategy’s stock in relation to its Bitcoin holdings—falling from 86% to 39%—is indicative of the challenges it faces amidst increasing competition in the sector. Cipolaro also remarked on the evolution of such investments, noting that what began as a strategic investment in 2020 has developed into a vast industry centered around public firms focused on owning Bitcoin and other cryptocurrencies.
