Strategy Acquires 130 Bitcoin for $11.7 Million

TLDR

• Strategy now holds 650,000 Bitcoin valued at $56 billion.
• Recent purchase involved 130 Bitcoin at $89,960 each.
• Acquisition funded by selling 8.21 million shares of MSTR.

Michael Saylor’s Strategy has purchased 130 Bitcoin, totaling $11.7 million, over a two-week period in November. This acquisition is part of a continued strategy to increase the company’s Bitcoin holdings, which now amount to 650,000 BTC. These holdings are valued at approximately $56 billion.

Michael Saylor is the Executive Chairman of Strategy, a company that has been a significant player in Bitcoin accumulation since 2020. His firm's ongoing investment in Bitcoin cements its status as one of the largest corporate holders of the cryptocurrency globally.

Details of the Recent Bitcoin Purchase

The latest purchase involved acquiring Bitcoin at an average price of $89,960 per BTC. This investment aligns with Strategy’s pattern of accumulating Bitcoin during various market conditions, reinforcing its strategy of holding a substantial cryptocurrency reserve.

This move was disclosed through SEC filings. Strategy not only completed a Bitcoin purchase but also announced a $1.44 billion USD cash reserve aimed at securing dividend payments for preferred shareholders and servicing existing debt. Latest updates from CoinGape Media provide further insight into this strategic decision.

Funding the Acquisition and Reserves

Strategy funded the acquisition through the sale of 8.21 million shares of MSTR common stock. This sale raised $1.48 billion. The company intends to cover 12 months of preferred stock dividends with the created cash reserve, with the potential to extend coverage to 24 months or more based on market conditions.

The firm retains a capacity for further share issuance, with $13.37 billion available in future issue capability and $30.2 billion under various ATM programs.

Impact on Bitcoin and Market Sentiment

Strategy’s Bitcoin holdings represent more than 3% of the fixed 21 million Bitcoin supply. While this accumulation does not directly involve Ethereum or other altcoins, it further solidifies Bitcoin's role in corporate treasury strategies. No significant liquidity shifts or staking activities were reported concerning this purchase.

A previous purchase occurred just a week before the latest, involving 8,178 Bitcoin acquisitions worth $835.6 million. Despite the increase in holdings, Strategy’s stock has faced challenges, reflecting broader market volatility and skepticism.

Community and Market Reactions

Michael Saylor tweeted about these financial moves with hints, sparking various market interpretations. While the Fear and Greed Index read as fearful, around 20, many see this as reinforcing the vision of Bitcoin as a long-term store of value for corporations.

Saylor reiterated that the creation of a USD reserve marks a strategic step in the firm’s growth. He dismissed concerns regarding the potential removal of Strategy’s stock from MSCI indices, emphasizing its strong conviction in Bitcoin.

“Establishing a USD Reserve to complement our BTC Reserve marks the next step in our evolution… positioning us to navigate short-term volatility while pursuing our mission to be the world’s leading issuer of Digital Credit.”

Michael Saylor