- Strategy bought 3,081 Bitcoin for $356.9 million and now owns over 3% of Bitcoin’s total supply.
- The company funded the purchase by selling MSTR stock, but the stock price dropped 4% after the announcement.
- Despite market volatility, the strategy continues weekly Bitcoin purchases, and some analysts predict MSTR could reach $500.
Strategy has completed its fourth consecutive weekly Bitcoin acquisition, purchasing 3,081 BTC for $356.9 million at an average price of $115,829 per coin. The enterprise software company now controls 632,457 Bitcoin tokens, representing over 3% of the cryptocurrency’s total 21 million supply.
Source: Strategy’s SEC filing
The latest purchase brings Strategy’s total Bitcoin investment to $46.50 billion, with an average acquisition price of $73,527 per token. The company reported a Bitcoin yield of 25.4% year-to-date, maintaining its position as the global corporate Bitcoin holder.
Funding Strategy Contradicts Previous Guidelines
Strategy funded the purchase primarily through common stock sales, marking a departure from recent corporate guidance. Just one week prior, the company stated it would not sell MSTR stock to acquire Bitcoin when the premium to net asset value falls below 2.5x.
The company previously announced it would only actively sell common stock for Bitcoin purchases when the premium exceeds 4.0x. This latest transaction suggests a more aggressive acquisition approach despite current market conditions.
Executive Chairman Michael Saylor hinted at the purchase on social media, sharing the company’s Bitcoin portfolio tracker with the comment “Bitcoin is on sale.” The acquisition continues MicroStrategy’s systematic accumulation strategy, which began in 2020.
Source: Michael Saylo’s X
Stock Performance Under Pressure
MSTR shares declined over 4% following the announcement, trading around $343 compared to the previous week’s close of $358. The stock has surrendered significant gains, showing only 19% growth year-to-date after reaching much higher levels.
Monthly performance shows a steeper decline, with MSTR down over 15% in the past 30 days. The stock’s volatility reflects Bitcoin price movements and investor sentiment regarding the company’s aggressive cryptocurrency strategy.
Despite the company’s weakness, some analysts remain optimistic about Strategy’s prospects. Pro-crypto lawyer John Deaton projected that MSTR could reach $500 if Bitcoin climbs to $250,000 within twelve months.
The company’s Bitcoin-focused strategy has created a unique investment vehicle that trades at varying premiums and discounts to its underlying cryptocurrency holdings. This structure allows traditional equity investors to gain Bitcoin exposure through regulated markets.
Strategy’s continued accumulation occurs amid broader cryptocurrency market volatility. Bitcoin prices have experienced recent declines, presenting what the company views as purchasing opportunities rather than cause for concern.
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