Strategy Inc. Purchased an additional 2,486 Bitcoin for $168.4 million last week, bringing its total holdings to 717,131 BTC, according to a Tuesday filing. The purchases, funded through a combination of common stock sales and the sale of the company’s STRC preferred series of stock, continue a long-running accumulation strategy despite ongoing volatility in the cryptocurrency market.
The company, led by Executive Chairman Michael Saylor, now holds Bitcoin acquired for a total of $54.52 billion, representing an average purchase price of $76,027 per Bitcoin. With Bitcoin currently trading around $68,000, Strategy’s holdings reflect an unrealized loss of approximately $5.7 billion, or roughly $8,000 per coin.
Strategy’s common stock provides investors with amplified exposure to Bitcoin, absorbing the volatility of its holdings, according to the company. The firm accounted for more than 90% of net new public-company purchases of Bitcoin in January, and now controls nearly two-thirds of the approximately 1.13 million BTC held by public companies. Strategy as well offers hybrid digital credit instruments like STRC and STRF.
The recent Bitcoin purchases were financed with $90.5 million from common stock sales and $78.4 million from the sale of STRC preferred stock. Shares of Strategy are down more than 60% year-over-year and fell 3.2% in premarket trading following the disclosure.
Analysts have characterized Strategy as a leveraged Bitcoin portfolio, with its holdings funded by both debt and equity. The company seeks to increase Bitcoin Per Share, which it believes will result in increased MSTR value over the long run.
