- Strategy announced it had acquired an additional $39.8 million in Bitcoin last week, bringing its stack to 717,722 BTC.
- However, the company is sitting at unrealized losses of $5.96 billion to $8.51 billion amid persistent market corrections.
Michael Saylor, Executive Chairman of Strategy (MSTR), made the all-too-familiar cryptic post on Sunday, showing a chart of their company’s Bitcoin (BTC) buying spree over the years. Typically, it hinted at a major purchase announcement happening between Monday and Tuesday.
Today, Strategy did just that. It revealed via social media posts and its official website that it indeed bought multi-million-dollar worth of the premier crypto asset.
Strategy’s Latest Bitcoin Purchase
According to Strategy’s recent Form 8-K disclosure at the US Securities and Exchange Commission (SEC), it secured 592 BTC between February 17 and 22 for $39.8 million. It came at an average purchase price of $67,286 per BTC as the asset traded in the $65,000 to $70,000 range.
The move increases the company’s holdings to 717,722 BTC. By far, it already allocated $54.56 billion in its Bitcoin treasury. The figures translate to an average cost of $76,020 per BTC, a little improvement from the previous $76,027 per BTC.
Meanwhile, Strategy’s unrealized losses continue to accumulate as Bitcoin fell from a high of $67,714.69 to a low of $64,162.53 at the start of the regular workweek. This meant a decline in the value of its BTC haul from around $48.6 billion to $46.05 billion, representing unrealized losses of $5.96 billion to $8.51 billion.
Additionally, the business’s Multiple to Net Asset Value (mNAV), which represents the MSTR shares’ fully diluted market cap relative to the value of its BTC holdings, is once again at 0.98x. This indicates the market is valuing Strategy’s total equity relative to its digital assets at a discount, a far cry from the more than 2x premium it experienced for most of last year.
Is Saylor Making the Same Call on Apple with Bitcoin?
Saylor’s post regarding Strategy’s latest Bitcoin acquisition drew mixed reactions from the crypto community. Several commenters mocked him and their company for the lower-than-usual purchase despite the ongoing dips in the coin’s price. There was the usual “Saylor is running out of money” FUD (Fear, Uncertainty, Doubt) thrown around by some of them.
Others reminded people how Saylor blew roughly $6 billion during the dot-coin bubble burst. However, some praised him for surviving that crisis and making a good call on Apple shares, which have grown from a market cap of over $600 billion at that time to $3.93 trillion today.
Supporters believe Saylor could be making a similar game-changing projection in Bitcoin, given his and Strategy’s level of commitment to the asset and experience with Apple. For someone who has survived the dot-com crisis with billions of losses, he is no stranger to the “all-or-nothing” nature of high-conviction plays, and he might definitely be into something here.
