Michael Saylor’s Strategy Adds 2,486 Bitcoin for $168 Million, Reaches 717,000 BTC

Highlights:

• Michael Saylor’s Strategy purchased 2,486 BTC for $168M last week.
• The company now holds 717,131 BTC worth approximately $48.8B.
• Funds raised through equity offerings support the firm’s Bitcoin acquisitions.

Michael Saylor’s Strategy has purchased an additional 2,486 Bitcoin worth around $168 million, bringing the firm’s total holdings to a remarkable 717,131 BTC. The most recent acquisition costs an average of $67,710 per Bitcoin. The company had spent around $54.5 billion buying this massive stake. This acquisition comes as Bitcoin is currently worth approximately $68,000 per coin.

As usual with his announcements, Michael Saylor hinted at the purchase ahead of time. On February 15, he posted a cryptic post on X (formerly Twitter) with the message “99>98.” This was an indication that this new acquisition would be larger than the previous one. This hint also gave an early indication to the market of the firm’s continuing Bitcoin strategy.

This is the eighth consecutive weekly purchase of Bitcoin by Strategy. It demonstrated the determination of the company to accumulate more cryptocurrency. Even with Bitcoin price volatility, Strategy remains optimistic about the potential of the digital asset as the company faces a substantial paper loss.

Saylor’s Strategy Finances the Acquisition Through Stock Sales

The latest Bitcoin acquisition by Strategy was fully funded through the sale of its stock, according to the filing. The company sold 660,000 shares of its Class A common stock between February 9 and February 16 for $90.5 million. Additionally, the company raised $78.4 million by selling 785,354 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock. This takes the cumulative amount raised on its equity offerings to about $169 million, which was used to buy the new Bitcoin.

This fundraising program is part of the broader plan to finance more Bitcoin acquisitions. Strategy has established several perpetual preferred stock projects, such as the STRK, STRC, STRF, and STRD series. These programs provide the company with flexibility in raising capital to make additional investments in Bitcoin. The company has also outlined an $84 billion capital increase that extends to 2027 to facilitate further acquisitions.

Michael Saylor’s Strategy is now the largest corporate user of Bitcoin, holding over 3% of the total supply of Bitcoin. The company has consistently shown confidence in the future of Bitcoin, continuing to hold its acquisitions as long-term assets. 

Increased Institutional Interest Amid Quantum Concerns

The company leadership stressed that they are not planning to sell any of their Bitcoin. During the latest earnings call, the firm said that the company can endure major declines in the Bitcoin price. The firm noted that it might hold its position even when Bitcoin drops to a low of $8,000.

In addition, Strategy is not deterred by growing fears about the potential dangers of quantum computing to Bitcoin. Notably, Shark Tank investor Kevin O’Leary has raised the alarm of a potential Bitcoin crash because of quantum computing.

Meanwhile, Bitcoin has declined by 0.10% to trade at $67,715 following the broader market downturn. This latest pullback has seen the monthly loss extend to 30%. Moreover, its trading volume has dropped by 10% to $32 billion.