- Leading DAT company Strategy topped up its reserves by 1,229 Bitcoin, valued at $108.8 million.
- The business now owns 672,497 Bitcoin at a total investment of $50.44 billion.
Strategy (formerly MicroStrategy) followed up its Executive Chairman, Michael Saylor’s usual Sunday teaser with a significant announcement on Monday. The business analytics platform reported acquiring 1,229 Bitcoin (BTC) for $108.8 million.
The purchase averaged $88,568 per BTC, when Bitcoin traded between $83K and $94K from December 22 to 28. The company notably raised funds for its latest crypto asset acquisition by selling 663,450 shares of MSTR Class A Common Stock at $108.8 million.
Strategy Raises Portfolio with 672,497 Bitcoin
The move increased Strategy’s digital asset treasury (DAT) to 672,497 BTC, representing approximately 3.37% of Bitcoin’s 19.96 million circulating supply. Meanwhile, it reduced the business’s year-to-date (YTD) BTC yield from the previous purchase announcement’s 24.9% to 23.2%. This key performance indicator shows the institution’s success in executing its Bitcoin accumulation playbook without diluting its equity over a specified period.
So far, Strategy has allocated $50.44 billion to build up its DAT, at an average of $74,997 per BTC. The figures are $25 higher than the previous disclosure’s average.
On the other hand, Strategy maintains cash reserves of $2.188 billion to guarantee dividend payments to stakeholders for more than a year, even during periods of market volatility, without ever touching its BTC holdings.
Crypto Community’s Mixed Reaction
Strategy’s latest disclosure gained mixed reactions from the crypto community. Many praised the company for its unwavering commitment to Bitcoin and its long-term focus.
One of the loudest critiques, again, came from Peter Schiff, founder of SchiffGold and a resident Bitcoin basher. He mocked the company for already being down by over a thousand dollars from its average buy price as BTC dipped to $86K in the last 24 hours heading into Monday evening (UTC).
Additionally, Schiff asked Saylor and his group about their rationale for selling down their newly established treasury reserve to buy even more Bitcoin, especially given that their stock is now trading at a discount relative to the BTC they own. However, a review of Strategy’s database as of the time of writing shows that the company’s Market-Adjusted Net Asset Value (mNAV) remains at 1.06.
The institution’s mNAV ratio exceeding 1 indicates that investors still value MSTR shares at a premium, contradicting Schiff’s claim that its shares are currently trading at a discount.
