Disclaimer: The author of this article has a financial interest in Strategy (MSTR).
Expanding Bitcoin Holdings
Strategy (MSTR), the company previously known as MicroStrategy, has resumed its aggressive acquisition of Bitcoin, bringing its total holdings to an impressive 478,740 BTC. This surge follows a brief pause in purchases, with the company investing a substantial $742.4 million into Bitcoin last week.
Recent Purchases and Financial Implications
During the week ending February 9, the Tysons Corner, Virginia-based firm acquired 7,633 BTC, as reported by Executive Chairman Michael Saylor on X. The average purchase price for this batch of Bitcoin was $97,255, which consequently raised the company’s overall average purchase price to $65,033 per Bitcoin.
Interestingly, Strategy did not engage in any Bitcoin purchases during the week ending February 2. This hiatus is likely attributed to a self-imposed blackout period coinciding with the company’s earnings announcement. On February 6, Strategy reported a fourth-quarter net loss of $3.03 per share, a significant decline compared to an income of $0.50 per share recorded in the same period the previous year.
Funding the Bitcoin Acquisition
According to an 8-K filing, the latest Bitcoin purchases were financed through proceeds generated from share sales under an agreement, alongside funds raised from the perpetual preferred equity offering of Strike (STRK). This strategic financial maneuvering highlights the company’s commitment to bolstering its cryptocurrency portfolio.
Saylor’s Vision for Bitcoin
In a recent tease about the Bitcoin acquisition, Michael Saylor reiterated his enthusiasm for cryptocurrency, stating, “Death to the blue lines. Long live the green dots.” This statement reflects his ongoing bullish sentiment on Bitcoin and the company’s continued investment strategy.
Conclusion
Strategy’s renewed focus on Bitcoin purchasing signals a strong commitment to cryptocurrency investments, despite recent financial challenges. As the firm continues to expand its holdings, it remains a key player in the ongoing Bitcoin narrative, capturing the attention of investors and analysts alike.
