Strategy added another 1,142 Bitcoins to its balance sheet last week, a move that is an extension of its long-running accumulation plan. The company disclosed its purchase in a regulatory filing, confirming that it had continued making the acquisition even as its position remained underwater.
The purchase was disclosed in an 8-K filing to the US Securities and Exchange Commission on Monday. Strategy revealed it bought the Bitcoin between February 2nd and February 8th. The average cost came in at $78,815 per coin.
The purchase now gives Strategy a total of 714,644 Bitcoins. This stack has a current market value of around $49 billion. Strategy revealed it has spent around $54.4 billion, including fees, to build this position.
Strategy Funds BTC Buy Through Equity Sales
The company stated that its average purchase price per holding is $76,056 per Bitcoin. The company financed its latest purchase through its at-the-market equity program. Strategy sold 616,715 of its Class A stock for about $89.5 million.
The company’s executive chairman, Michael Saylor, hinted at the purchase on Sunday. He posted the company’s Bitcoin portfolio tracker on X. He captioned it “Orange Dots Matter,” signaling another buy.
The purchase came after the company posted a significant loss. It occurred after Bitcoin pulled back significantly. The loss wiped out tens of billions of dollars from Strategy’s balance sheet.
Bitcoin declined even further after the earnings report. However, the asset did not return to the range it traded at last week. Market participants questioned the timing of the purchase.
Also Read: Strategy to Launch Bitcoin Security Program for Quantum Risks
Crypto trader Satoshi Flipper expressed his discontent with the decision to buy at the current levels even through dollar-cost averaging. His comments gained traction as many people shared similar concerns.
CEO Addresses Leverage and Long-Term Risk Limits
During the earnings call, CEO Phong Le spoke about the company’s leverage. He said that if the price of Bitcoin were to fall to 8,000 and stay at that price for five or six years, then Strategy would face challenges servicing its convertible debt. He added that the company is still within its risk limits.
Saylor has also announced a new Bitcoin Security Program. He said that Strategy plans on working with the global cybersecurity and crypto security community. He described quantum computing as a long-term issue rather than an immediate threat.
There are mixed opinions among analysts regarding this move by the company. TD Cowen stated that Strategy has reinforced its position as the lead corporate Bitcoin treasury holder. Bernstein pointed out that the company has managed its debt by having no significant debt maturities until 2028.
Shares of MSTR fell by more than 5% in pre-market trading on Monday, according to Yahoo Finance data. Bitcoin also struggled to stay above $69,000. Investors continued to watch the company’s balance sheet and the broader crypto market.
Also Read: Binance SAFU Adds 4,225 BTC, Total Reserve Climbs to 10,455 BTC
