Strategy Buys 525 Bitcoin in Latest Purchase
Strategy, an enterprise software company led by Bitcoin advocate Michael Saylor, bought 525 BTC between September 8 and 14. The company spent over $60 million, paying an average of $114,562 per coin.
This purchase increases Strategy’s total Bitcoin holdings to about 638,985 BTC. The firm has spent $47.23 billion to build this position, with an average cost of $73,913 per coin.
At current market prices, Strategy’s Bitcoin is worth more than $73 billion. This results in over $31 billion in unrealized gains.
Michael Saylor shared the update on X, noting the company has achieved a 25.9% Bitcoin yield year-to-date.
Smaller Purchase Compared to Previous Buys
The recent 525 BTC purchase is smaller than Strategy’s earlier buys. Just a week ago, the company added 1,955 BTC for $217 million. Earlier this year, it made single purchases exceeding $1 billion.
Since summer 2020, Strategy has regularly bought Bitcoin, becoming a leader in corporate crypto investment.
Funding and Market Reaction
Strategy funded the latest purchase by selling shares through equity programs. These include STRF, STRK, and STRD preferred stock sold at-the-market.
- Strategy has raised over $20 billion from STRK preferred shares.
- It raised $16.1 billion from MSTR common stock issuance.
While STRK preferred shares are backed by Bitcoin claims, some shareholders worry about dilution from frequent stock issuance.
Despite the announcement, Strategy’s stock price remained flat. MSTR shares traded around $324, down 1.98% in pre-market activity. Bitcoin traded near $115,000 after a weekend rebound to $116,000.
Analysts remain divided on the stock’s outlook. JPMorgan flagged risks for crypto treasury firms. TD Cowen kept a buy rating with a $640 target. Benchmark set a higher forecast at $705.
