Decoding Strategy’s [MSTR] 168-Bitcoin buy amid market volatility
Strategy holds 640,031 BTC, leading corporate adoption and setting the benchmark for institutional Bitcoin investment.
Key Takeaways
How does Strategy fund its Bitcoin purchases?
The purchases are funded through at-the-market (ATM) sales of its perpetual preferred stocks (STRK, STRF, STRD, STRC) and its broader “42/42” equity plan.
How did the market react to Strategy’s purchases?
MSTR stock traded at $296.61, up 2.33%, while Bitcoin was at $107,792.91 after a 3.14% drop in 24 hours.
Bitcoin [BTC] treasury giant Strategy (formerly MicroStrategy) continues its aggressive accumulation strategy despite market volatility.
Last week, the company purchased 168 BTC for approximately $18.8 million at an average price of $112,051 per coin. This purchase was made after the market sell-off triggered by the Black Friday crypto crash on the 10th of October.
Between the 13th and the 14th of October, the company completed the acquisition. As a result, Strategy now holds a total of 640,418 BTC.
And the average cost across all purchases stands at $74,010 per BTC.
Strategy’s funding tactics
Strategy funded its latest Bitcoin acquisitions using proceeds from at-the-market (ATM) sales of its perpetual preferred stocks, STRK, STRF, and STRD.
The company’s ATM programs include $21 billion for STRK, $4.2 billion for STRF, and $4.2 billion for STRD, alongside $2.1 billion for STRC, supplementing its broader “42/42” plan.
This initiative, upsized from the original “21/21” strategy, aims to raise a total of $84 billion in equity offerings and convertible notes for Bitcoin purchases through 2027. This reflects Strategy’s commitment to long-term accumulation.
The announcement coincided with Strategy’s MSTR stock trading at $296.61, marking a 2.33% gain according to Google Finance.
Strategy’s rising confidence in Bitcoin
While critics like gold advocate Peter Schiff questioned the timing and average purchase price, Strategy remains a benchmark for institutional Bitcoin adoption.
Additionally, data from BitBo shows the company holds 640,031 BTC, valued at roughly $71.84 billion, making it the world’s largest corporate Bitcoin holder.
Finally, CoinGecko’s Bitcoin Treasury Holdings data further confirms the firms’s leading position, highlighting its role as a trailblazer in integrating Bitcoin into corporate reserves.
