Strategy, previously known as MicroStrategy, saw its shares climb 2% on Monday following news of another significant Bitcoin purchase. The company, which has positioned itself as a leading Bitcoin treasury, now holds a record 848,000 BTC.
New Bitcoin acquisition and financing details
According to a filing with the US Securities and Exchange Commission, Strategy acquired 334 Bitcoin between September 28 and October 4, investing about $28.7 million.
The average price for this latest purchase was $85,838.80 per Bitcoin. With this addition, the company’s average acquisition cost now stands at $75,440.70 per coin. In total, Strategy’s Bitcoin reserves are valued at roughly $73 billion, and the firm’s cumulative investment in Bitcoin, including related costs, is approximately $64 billion.
Strategy funded the acquisition using a combination of proceeds from recent sales of its Class A common stock and available USD cash. Last week, it sold 92,894 MSTR shares, raising about $15.7 million. The remaining $13 million for the Bitcoin buy came from the company’s USD cash reserves.
Additionally, the company repurchased 1.77 million STRC preferred shares for $176.3 million, further adjusting its balance sheet.
Impact on reserves and operational moves
As of October 4, Strategy held $18.8 billion in MSTR shares available for potential future sales via its at-the-market program. The firm also reported a USD Reserve of $4.88 billion and direct USD Cash holdings of $833.4 million on the same date.
For the latest quarter, $154.1 million of the Bitcoin purchase was sourced from USD Cash, and an additional $22.2 million derived from interest earned on cash, cash equivalents, and short-term investments. The company spent $142.5 million from its USD Reserve to cover preferred-stock dividends and interest expenses on outstanding debt.
Strategy’s position among public companies
Strategy remains the world’s largest public holder of Bitcoin. Bitcoin Treasuries data indicates that a total of 196 public companies have adopted various models for Bitcoin acquisition.
Michael Saylor, executive chairman and co-founder of Strategy, publicly disclosed the company’s total Bitcoin position and average acquisition price. He also posted a Bitcoin tracker chart on X, highlighting the company’s ongoing commitment to growing its cryptocurrency holdings.
Mini dictionary: Strategy is a business intelligence firm that rebranded from MicroStrategy. It is led by executive chairman Michael Saylor and is known for holding the largest Bitcoin portfolio among public companies.
Strategy holds more than 4% of Bitcoin’s 21 million supply, with its holdings now valued at an estimated $73 billion and current gains totaling around $9 billion.
| BTC Holdings | Total Value | Average Purchase Price | Paper Gains | |
|---|---|---|---|---|
| Strategy (MSTR) | 848,000 BTC | $73 billion | $75,440.70 | $9 billion |
Quarterly estimates and stock performance
Strategy estimated a $20.91 billion gain on its digital assets for the third quarter, with a carrying value of $70.82 billion for its Bitcoin holdings as of September 30.
Although the company continued to invest in Bitcoin, both Strategy’s stock and Bitcoin have yet to return to their levels from a year ago. While MSTR shares have gained 3% since the beginning of the year, they have dropped more than 50% over the past 12 months. Bitcoin itself has declined about 2% year to date and is down roughly 30% compared to last year.
The company used proceeds from MSTR share sales and its cash holdings to fund Bitcoin purchases, while also repurchasing preferred stock and covering significant debt interest.
