Strategy Adds Nearly $1 Billion in Bitcoin in the Last Week, Expanding Holdings
Strategy (formerly MicroStrategy) purchased $980.3 million worth of Bitcoin in the past week, acquiring 10,645 BTC at an average price of $92,098 per bitcoin. This brings the company's total Bitcoin holdings to 671,268 BTC, obtained for approximately $50.33 billion with an average cost of $74,972 per BTC.
Currently, with the price of Bitcoin valued around $89,462, Strategy's Bitcoin stash is estimated to be worth roughly $60 billion. To fund these Bitcoin acquisitions, Strategy sold $989 million in stock last week, including about $882 million in MSTR and $82 million in STRD.
Earlier this month, the firm established a $1.4 billion cash reserve intended to assist in paying dividends and to reduce the necessity of selling Bitcoin. Despite this, company executives have indicated that they may still sell cryptocurrency assets during market downturns.
The MSTR stock closed at $176, down 21% over the last month and by 53% over the past six months. Bitcoin itself has declined about 7% in the last 30 days and over 29% from its October peak above $126,000.
Analysts at Cantor Fitzgerald have dismissed concerns regarding Strategy's aggressive Bitcoin buying strategy. However, some analysts have lowered their price targets due to the potential exclusion of Strategy from the MSCI index. In response, Strategy sent a letter to MSCI arguing that excluding cryptocurrency treasury firms like themselves could threaten national security and expressed opposition to former President Trump's pro-crypto policies.
