Strategy, the company that kicked off the trend of putting Bitcoin on corporate balance sheets, just won’t quit buying more. Michael Saylor, its cofounder and executive chairman, recently shared on X that the company spent roughly $217.4 million to snap up another 1,955 Bitcoins. These coins were bought between September 2 and 7, at an average price of $111,196 each.
This latest move brings Strategy’s total Bitcoin stash to a staggering 638,460 BTC. At current prices, that stack is worth about $71.5 billion. Saylor, never one to hide his plans, had even hinted at the purchase the Sunday before with a simple message to his followers: “Needs more orange.” That’s his colorful way of saying more Bitcoin.
Strategy, formerly known as MicroStrategy, started buying Bitcoin back in 2020 and hasn’t sold a single one. This bold strategy has made it the world’s biggest holder of the leading cryptocurrency among public companies. In fact, over 185 other public companies have followed suit, collectively holding more than 1,000,000 BTC. Saylor noted that Strategy’s total Bitcoin holdings cost about $47.17 billion to acquire, at an average price of $73,880 per coin, including all fees. This huge amount of Bitcoin represents more than 3% of the entire 21 million Bitcoin supply, with estimated unrealized gains of $24.3 billion.
The company funds these big Bitcoin purchases by selling various types of shares. This includes Class A common shares, ticker MSTR, along with perpetual preferred shares named Strike (STRK) and Strife (STRF). These sales are part of the company’s “at-the-market” (ATM) programs. They include $21 billion for STRK, $2.1 billion for STRF, and $4.2 billion for STRD. These efforts feed into a larger “42/42” plan to raise $84 billion through capital and convertible notes by 2027, all earmarked for buying more Bitcoin. This new purchase follows another big buy just last Monday, when Strategy added 4,048 Bitcoins for about $449.3 million.
Strategy Shrugs Off S&P 500 Snub, Clicks Past Competitors
This news comes right after Strategy missed out on joining the S&P 500 index. Despite its strong financial results, the company didn’t get a spot in the latest index rebalance. Many analysts were disappointed, believing an inclusion would have brought in passive funds and given the company more exposure to investors.
Saylor seemed to brush off the snub on social media. He shared a chart highlighting how Strategy’s stock has performed far better than the S&P 500 since it started its Bitcoin treasury strategy. “Thinking about the S&P right now…,” he posted. Over the past five years, Strategy’s shares have shot up by more than 2,200%. The S&P 500, in contrast, climbed 94% during the same time, according to Google Finance data.
However, Strategy’s shares have hit a rough patch recently, dropping 15% in the last month. This dip mirrors a wider slowdown in the cryptocurrency market. Bitcoin itself has fallen 10% from its peak of $124,000, affecting other companies that hold Bitcoin as well. Strategy’s shares closed at $335.87 last Friday, up 2.5%. But early trading on Monday saw almost all of those gains erased. As of this writing, Bitcoin is trading around $112,000.