Strategy Scoops Up Another 2,486 Bitcoin For $168 Million As Its $48 Billion Stack Remains Underwater ⋆ ZyCrypto

Strategy, the world’s largest corporate holder of Bitcoin, disclosed on Tuesday that it expanded its BTC position last week, despite its approximately $48 billion hoard remaining under pressure amid the ongoing downturn in crypto markets.

Strategy Adds To BTC Stack Despite Market Weakness

According to a Feb. 17 regulatory filing with the U.S. Securities and Exchange Commission (SEC), the Michael Saylor-led company purchased an additional 2,486 BTC between Feb.9 and Feb. 16. Strategy purchased the coins for around $168.4 million in total, with a cost basis of $67,710 per coin. 

Strategy established the Bitcoin Standard back in August 2020. The Tysons, Virginia-based company now holds 717,131 BTC, or just over 3.4% of the entire possible Bitcoin supply, currently valued at about $48.15 billion. But Strategy spent more than that to acquire the coins, given a current cost basis of $76,027 per BTC, giving the company an approximately $5.7 billion unrealized loss on its holdings. 79772

Bitcoin’s latest price slide has left Strategy’s gargantuan haul underwater, following a sharp retreat from the cryptocurrency’s all-time high of $126,080 posted in October.

Strategy — formerly known as MicroStrategy — sold $90.5 million worth of Class A Common Shares (MSTR) to fund the purchase, and roughly $78.4 million worth of perpetual Stretch preferred stock, STRC.

Strategy Can Withstand A Bitcoin Crash To $8K

Strategy recently reiterated that it can withstand a potential decline in the price of the premier crypto to $8,000 and still cover its approximately $6 billion in debt with its BTC stockpile.

“Strategy can withstand a drawdown in $BTC price to $8K and still have sufficient assets to fully cover our debt,” the company asserted in a post on X.

To further assuage concerns, Strategy Executive Chairman Saylor revealed plans to switch existing convertible bond debt into equity — a step aimed at reducing leverage on its balance sheet.