It seems Strategy can’t get enough Bitcoin. The company, known for its software but famous for its Bitcoin holdings, just added more to its corporate treasury. This marks another round of consistent investments into the cryptocurrency.
Cofounder and executive chairman Michael Saylor hinted at the purchase over the weekend. He posted his usual “Always ₿e Stacking” message on X, dropping a clue for followers. On Monday, the company confirmed the move. Saylor shared a regulatory filing with the U.S. Securities and Exchange Commission (SEC) detailing the transaction.
Strategy spent about $22.1 million to buy 196 more Bitcoins. These were acquired between September 22 and 28. The average price paid was $113,048 for each coin. The company used money from selling its Class A common stock, MSTR. They also used funds from sales of their Strife perpetual preferred shares (STRF) and Stride perpetual preferred shares (STRD).
With this latest investment, Strategy now holds a massive 640,031 Bitcoins. This entire stack is valued at about $72 billion. The company’s average purchase price for all its Bitcoin is $73,983 per coin. In total, Strategy has spent around $47.4 billion, including fees and other costs. This means they are sitting on an estimated paper gain of $24.4 billion. To put that in perspective, Strategy’s Bitcoin stash is more than 3% of the total 21 million Bitcoins that will ever exist.
Market Trends and Company Performance
Strategy continues its buying spree even with smaller purchases lately. This recent acquisition marks the eighth straight week the company has invested in Bitcoin. Just last Monday, they spent $100 million to add 850 Bitcoins. Strategy pioneered this corporate Bitcoin buying trend back in 2020. They haven’t sold any of their coins since. Now, 185 other public companies have followed their lead, including firms like MARA, XXI, Bitcoin Standard Treasury Company, and Japan’s Metaplanet.
Despite their strong Bitcoin position, Strategy’s stock has faced headwinds. Its shares (MSTR) have dropped 32% since July. Back then, they traded slightly above $455 per share. The company’s Bitcoin net asset value adjusted per share, or mNAV, has also seen a big reduction.
Strategy’s market capitalization stands at $87.6 billion. This value is still higher than the company’s actual net asset value from its Bitcoin holdings. This difference worries some investors. They question the company’s high valuation and its aggressive Bitcoin buying strategy. However, analysts at Bernstein offer a different view. They point out Strategy’s low debt levels. Also, the company has no debt payments due until 2028. This suggests their financial commitments are manageable.
The Block noted Strategy’s mNAV is currently about 1.23. MSTR shares saw a slight increase of over 2% during pre-market trading on Monday. This followed a 2.8% rise on Friday, closing at $309.06, according to Google Finance. Meanwhile, Bitcoin itself has seen some price adjustments. The cryptocurrency is trading around $112,400 as of this writing, up 2.7% in the last 24 hours per CoinGecko data. However, it remains 9.6% below its August peak of over $124,000.