Strategy Expands Bitcoin Holdings to 640,808 BTC Despite S&P Credit Concerns

• Strategy’s latest Bitcoin acquisition totals 390 BTC, acquired at $114,562 per coin on average.

• This purchase elevates the firm’s overall Bitcoin reserves to 640,808 BTC, reflecting strategic accumulation.

• The company’s holdings are now worth about $47.44 billion, with an average purchase price of $74,032 per Bitcoin, per official disclosures.

Discover how Strategy’s latest Bitcoin purchase impacts its treasury strategy and stock performance. Explore the details of this $43 million acquisition and expert reactions in this in-depth analysis.

What is Strategy’s latest Bitcoin purchase?

Strategy’s latest Bitcoin purchase involves acquiring 390 BTC for roughly $43 million at an average price of $114,562 per coin. This addition strengthens the company’s position as the largest corporate holder of Bitcoin, with total reserves now at 640,808 BTC valued at approximately $47.44 billion. The move aligns with CEO Michael Saylor’s long-term vision of integrating Bitcoin into corporate balance sheets.

How has this purchase affected Strategy’s overall holdings?

Strategy’s total Bitcoin holdings have reached 640,808 BTC following the purchase, representing a significant concentration of its assets in cryptocurrency. According to the company’s financial disclosures, the average acquisition cost stands at $74,032 per Bitcoin, highlighting efficient capital deployment over time. This accumulation strategy has been consistent since Strategy rebranded from MicroStrategy, emphasizing Bitcoin’s role in treasury management. Market analysts note that such purchases often correlate with broader institutional interest in digital assets, though they introduce volatility risks to the balance sheet. S&P Global’s recent analysis points to this heavy reliance on Bitcoin as a factor in the firm’s B- credit rating, yet Strategy continues to prioritize expansion. Expert observers, including market analyst Adam Livingston, praise this approach for treating Bitcoin as a superior store of value compared to traditional assets like U.S. Treasuries.

Frequently Asked Questions

How much did Strategy pay for its recent Bitcoin acquisition?

Strategy invested approximately $43 million to acquire 390 Bitcoin, at an average price of $114,562 per coin. This transaction was disclosed in the company’s official update, demonstrating disciplined buying during market fluctuations and reinforcing its Bitcoin-first treasury policy.

What is the current value of Strategy’s Bitcoin holdings?

Strategy now holds 640,808 Bitcoin, which is valued at around $47.44 billion based on recent market prices. This substantial reserve positions the company as a key player in corporate cryptocurrency adoption, with ongoing purchases signaling confidence in Bitcoin’s long-term appreciation potential.

Key Takeaways

• Expanded Holdings: Strategy’s purchase of 390 BTC brings its total to 640,808 coins, valued at $47.44 billion with an average cost of $74,032 per Bitcoin.
• Stock Reaction: MSTR shares rose 2.27% to $295.63 following the announcement, though they remain down 4.8% over the past month amid credit rating concerns.
• Expert Critique: Analyst Adam Livingston argues the S&P B- rating mischaracterizes Bitcoin as a liability, potentially hindering corporate adoption of the asset.

Strategy (formerly MicroStrategy), led by Bitcoin [BTC] advocate Michael Saylor, has added to its already massive Bitcoin portfolio with another strategic purchase.

Saylor’s Strategy adds more Bitcoin

The company acquired 390 BTC worth approximately $43 million at an average price of $114,562 per coin, reinforcing its status as the world’s largest corporate holder of the cryptocurrency.

With this addition, Strategy’s total Bitcoin reserves climbed to 640,808 BTC, valued at about $47.44 billion, purchased at an average cost of $74,032 per coin.

In fact, just a day before the announcement, Saylor dropped his trademark hint on X, posting Strategy’s Bitcoin portfolio tracker with the caption, “It’s Orange Dot Day.”

Source: Michael Saylor/X

MSTR stock performance and S&P Global rating

Following the disclosure, Strategy’s (MSTR) shares reacted positively.

At press time, MSTR was trading at $295.63, a 2.27% increase over the previous session, based on Google Finance data. Yet, despite the brief uptick, the company’s shares remained down 4.8% from $314 over the past month.

This coincided with S&P Global assigning Strategy a B- credit rating earlier this week, placing the firm solidly in non-investment-grade territory, commonly referred to as “junk” status.

For context, the lowest investment-grade rating on S&P’s scale is BBB.

The S&P report acknowledged that the majority of Strategy’s balance sheet is concentrated in Bitcoin and predicted that the company will continue expanding its holdings significantly. This, it said, reinforces its view that Strategy’s capital structure remains “weak.”

However, despite the criticism, the downgrade appears to have done little to sway Saylor’s long-term vision.

Adam Livingston weighs in

Echoing Saylor’s sentiment, Livingston, a Market Analyst and supporter of Saylor’s Bitcoin strategy, argued that the rating unfairly penalizes Strategy for adopting Bitcoin as its primary treasury asset.

He contended that S&P’s assessment “misrepresents Bitcoin as a liability rather than an asset,” effectively discouraging corporate Bitcoin adoption.

According to him, if the firm’s reserves consisted of U.S. Treasuries instead, the agency would have labeled them as “high-quality capital.”

Source: Adam Livingston/X

Bitcoin price action and more

Meanwhile, BTC was trading at $114,236.48, down 1.48% over the past 24 hours, according to CoinMarketCap.

With Bitcoin’s volatility at record lows and institutional demand cooling, the Strategy’s ability to leverage debt and equity for further accumulation could be tested.

Conclusion

Strategy’s recent Bitcoin purchase of 390 BTC exemplifies its unwavering dedication to cryptocurrency as a core asset, now totaling 640,808 BTC worth $47.44 billion. Despite challenges like the S&P B- rating, which highlights risks in its concentrated holdings, supporters like Adam Livingston view this as a forward-thinking approach that could redefine corporate finance. As Bitcoin navigates current market dynamics, investors should monitor Strategy’s next moves for insights into institutional adoption trends.