Michael Saylor’s Strategy Buys More Bitcoin, Now Holds 717,131 BTC

TLDR

• Strategy acquired 2,486 BTC for $168.4 million between February 9 and February 16.
• The company’s total Bitcoin holdings now reach 717,131 BTC, valued at around $48.8 billion.
• Strategy’s average purchase price for Bitcoin stands at $76,027 per coin, totaling an investment of $54.5 billion.
• The Bitcoin acquisition was financed through the sale of 660,000 MSTR shares and 785,354 STRC shares.
• Strategy still has $7.88 billion in MSTR shares and $3.54 billion in STRC shares available for issuance.

Michael Saylor’s firm, Strategy, has acquired an additional 2,486 BTC for $168.4 million between February 9 and February 16. This purchase brings the company’s total holdings to 717,131 BTC, valued at approximately $48.8 billion. The recent acquisition was funded by the sale of the company’s own stock, according to an 8-K filing with the SEC.

Latest Bitcoin Acquisition Brings Total to 717,131 BTC

Strategy’s new purchase of 2,486 BTC occurred at an average price of $67,710 per Bitcoin. The acquisition raised the company’s total Bitcoin holdings to 717,131 BTC, worth $48.8 billion. The firm’s average cost per Bitcoin stands at $76,027, which brings the total investment to about $54.5 billion.

The company has seen an increase in its Bitcoin position, despite facing market volatility. With this recent buy, Strategy now holds over 3.4% of Bitcoin’s total supply. However, the value of its holdings is currently marked by approximately $5.7 billion in unrealized losses.

Strategy’s Stock Sales Fund Bitcoin Purchases

To finance the Bitcoin purchases, Strategy sold shares of its Class A common stock and perpetual Stretch preferred stock. The company raised $90.5 million by selling 660,000 MSTR shares and another $78.4 million from selling 785,354 STRC shares. Strategy still has $7.88 billion in MSTR shares and $3.54 billion in STRC shares available for issuance.

These sales are part of a broader funding strategy to acquire Bitcoin. Strategy plans to continue raising capital through a series of equity offerings and convertible notes. The company has outlined its goal to raise $84 billion by 2027 as part of its Bitcoin acquisition plan.

Strategy’s Current Position and Future Plans

As of February 16, Strategy has structured its debt conservatively. The firm believes it can withstand Bitcoin’s price falling to $8,000 while covering its debts. Strategy’s management, including CEO Phong Le, has emphasized that the company’s leverage is half that of investment-grade companies.

The company’s Bitcoin holdings are now worth less than its market cap, with an mNAV ratio of 0.91. Despite these challenges, Strategy’s stock saw a rise of 16.5% last week, with shares closing at $133.88. The firm remains optimistic about its position and its long-term outlook on Bitcoin’s performance.

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