Strategy Adds 855 BTC for $75.3M, Total Holdings Now Top 713,500

TLDR

• Strategy purchased 855 bitcoin for approximately $75.3 million during the final week of January.
• The average purchase price for this latest acquisition was $87,974 per bitcoin.
• The company’s total bitcoin holdings now stand at 713,502 BTC.
• Strategy has spent about $54.3 billion to accumulate its current bitcoin reserve.
• The recent drop in bitcoin’s price reduced Strategy’s paper gains to under $3 billion.

Bitcoin treasury company Strategy has expanded its holdings by purchasing an additional 855 BTC, spending $75.3 million in total. The transaction occurred before last week’s sharp market drops, locking in an average price of $87,974. This brings Strategy’s total bitcoin reserves to 713,502 BTC, valued at around $56 billion at current market prices.

Strategy Increases Bitcoin Holdings with New Purchase

Strategy completed its latest bitcoin acquisition between January 26 and February 1, according to its SEC filing on Monday. The company used proceeds from selling 673,527 shares of its Class A common stock, raising $106.1 million. No shares of preferred stocks were issued during this timeframe.

This recent buy raises the firm’s total bitcoin purchases to roughly $54.3 billion at an average of $76,052 per BTC. Strategy’s holdings now account for more than 3.4% of Bitcoin‘s capped 21 million supply. Executive chairman Michael Saylor confirmed the transaction and commented, “More Orange,” on Sunday via the bitcoin tracker update.

Despite the latest purchase, Strategy’s paper profits have contracted due to bitcoin’s falling price. The coin dropped to $74,400 over the weekend after peaking near $90,000 last week. This placed Strategy’s holdings briefly into a loss for the first time since October 2023.

Market Pullback Pressures Strategy’s Paper Gains

Bitcoin’s price correction caused Strategy’s unrealized profits to fall from nearly $ 8 billion to below $ 3 billion in just a week. During the crash, bitcoin first slipped to $81,000 on Thursday and then fell further on Saturday. The price hovered near $77,000 on Monday, placing Strategy just above breakeven.

At one point on Monday, bitcoin dipped below $76,000, pushing the company’s average purchase cost into negative territory. This marked the first such scenario since late 2023. However, a slight recovery brought holdings back above the cost basis.

Strategy’s share price reflected the broader downturn, falling 7% over the past week to close at $149.71 on Friday. The stock dropped another 8% in pre-market trading on Monday. The company’s market capitalization now trails the value of its bitcoin assets.

MSTR Stock Trails Behind Bitcoin Assets

Strategy’s stock has increasingly become an indirect Bitcoin exposure tool for institutional investors. Norway’s sovereign wealth fund derives 81% of its BTC exposure from Strategy shares. This translates to exposure equivalent to 7,801 BTC or 1.16% of the company.

Despite its market performance, Strategy’s capital structure is designed to endure long-term downturns. Saylor has previously stated the firm could withstand a 90% Bitcoin decline over five years. However, he acknowledged shareholders would “suffer” during such a scenario.

Current data from Bitcoin Treasuries shows that Strategy leads all public companies in BTC holdings. It is followed by MARA with 53,250 BTC and Tether-backed Twenty One with 43,514 BTC. Others in the top ten include Metaplanet, Bullish, and Coinbase.

MSTR’s market net asset value ratio stands at 0.81, reflecting investor sentiment below its asset value. Strategy’s average purchase price of $76,052 puts it close to breakeven as bitcoin recovers from weekend lows. The company still has $8.06 billion in MSTR shares available under its stock issuance program.

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