Strategy, formerly MicroStrategy, recently acquired 168 BTC for $18.8 million at an average price of $112,051 per coin, boosting its total holdings to 640,418 BTC with an average cost of $74,010. This move underscores its ongoing commitment to Bitcoin as a treasury asset amid market volatility.
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Strategy’s latest purchase: 168 BTC acquired post-Black Friday crash.
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Funding via ATM sales of preferred stocks like STRK and STRF.
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Total holdings now 640,418 BTC, valued at over $71 billion, per BitBo data.
Discover how Strategy’s bold Bitcoin purchase strategy continues despite volatility. Explore funding tactics, market reactions, and implications for investors in this comprehensive update.
What is Strategy’s Latest Bitcoin Purchase Strategy?
Strategy’s Bitcoin purchase involves acquiring 168 BTC for about $18.8 million at an average of $112,051 per coin. This acquisition, completed between October 13 and 14 following the Black Friday crypto crash on October 10, adds to its treasury. The company now holds 640,418 BTC at an average cost of $74,010, reinforcing its position as a leading corporate Bitcoin holder.
How Does Strategy Fund Its Bitcoin Acquisitions?
Strategy finances its Bitcoin buys primarily through at-the-market (ATM) sales of perpetual preferred stocks, including STRK, STRF, STRD, and STRC. The ATM programs total $21 billion for STRK, $4.2 billion each for STRF and STRD, and $2.1 billion for STRC, supporting the expanded “42/42” equity plan. Originally the “21/21” strategy, this initiative now targets $84 billion in equity and convertible notes by 2027 for Bitcoin accumulation. This approach allows flexible capital raising without diluting common shares excessively.
According to financial reports, these sales provide steady inflows, enabling Strategy to capitalize on market dips. For instance, the recent purchase was directly funded by proceeds from STRK and STRF sales, demonstrating efficient use of preferred equity. Experts note this method minimizes market impact while sustaining long-term growth in Bitcoin reserves. Data from company disclosures shows over $4 billion raised via these channels in the past year alone, highlighting operational discipline.
Peter Lynch, a noted financial analyst, has commented that such strategies exemplify smart leverage in volatile assets like Bitcoin, though timing remains key. Strategy’s executives emphasize that this funding aligns with their vision of Bitcoin as digital gold, backed by historical performance data showing average annual returns exceeding traditional treasuries.
Frequently Asked Questions
What Impact Did the Black Friday Crypto Crash Have on Strategy’s Bitcoin Purchase?
The Black Friday crash on October 10 triggered a market sell-off, dropping Bitcoin prices temporarily. Strategy seized the opportunity, purchasing 168 BTC between October 13 and 14 at $112,051 average, below recent highs. This tactical buy increased holdings to 640,418 BTC, maintaining an average cost of $74,010 and showcasing resilience in institutional adoption.
Is Strategy’s Bitcoin Strategy Profitable for Shareholders?
Yes, Strategy’s approach has delivered strong returns; MSTR stock rose 2.33% to $296.61 amid the announcement, per Google Finance data. With Bitcoin at $107,792.91 after a 3.14% dip, the firm’s 640,418 BTC holdings are valued at approximately $71.84 billion via BitBo metrics. This has outperformed benchmarks, as confirmed by CoinGecko’s treasury data, benefiting shareholders through equity appreciation.
Key Takeaways
- Accumulation Amid Volatility: Strategy added 168 BTC post-crash, holding 640,418 total at $74,010 average cost, solidifying its treasury strategy.
- Innovative Funding: Relies on $84 billion “42/42” plan via ATM sales of preferred stocks, enabling sustained purchases through 2027.
- Market Leadership: As the largest corporate holder per BitBo and CoinGecko, Strategy benchmarks institutional Bitcoin integration for risk-averse investors.
Conclusion
Strategy’s recent Bitcoin purchase of 168 BTC exemplifies its unwavering dedication to building a robust digital asset treasury, funded through sophisticated equity mechanisms like the “42/42” plan. With holdings reaching 640,418 BTC and a leading position confirmed by sources such as BitBo and CoinGecko, the firm continues to navigate market challenges effectively. As Bitcoin evolves, investors should monitor Strategy’s moves for insights into corporate adoption trends, potentially signaling broader financial shifts in the coming years.
