- Strategy bought 4,603 Bitcoin over the past week for $370 million at $80,318 per coin.
- The company now controls roughly 4.21% of BTC’s 20.07 million circulating supply.
- It continues to gain widespread criticism for continuously diluting its MSTR common stock to buy more BTC, raise cash reserves, pay interest and dividends, and repurchase STRC preferred shares.
The writing has been on the wall since last week, when Strategy (MSTR) revealed it had set aside $1.58 billion in dry powder. On Monday, it indeed resumed its Bitcoin (BTC) buying spree with a $370 million purchase.
Strategy’s Latest Bitcoin Purchase
According to Strategy’s latest Form 8-K filing at the US Securities and Exchange Commission (SEC), it secured 4,603 BTC over the past week at an average of $80,318 per coin. The move increases its holdings to 845,050 BTC, accounting for roughly 4.21% of the premier crypto asset’s 20.07 million circulating supply.
At this rate, the Bitcoin-focused digital asset treasury (DAT) company has already allocated $63.73 billion in BTC. The amount translates to an average purchase cost of $75,412 per BTC.
More Sales of MSTR Shares
Along the way, Strategy declared selling more than 4.53 million shares of MSTR Class A Common Stock. The offering netted the company $602.8 million.
Besides the Bitcoin purchase, the business added the proceeds of its latest common stock offering to fund $50.7 million in dividend payments to STRC Variable Rate Series A Perpetual Stretch Preferred Stock holders. Additionally, it repurchased nearly 1.56 million STRC shares for $151.8 million in line with the Digital Credit Securities provision of its Digital Credit Capital Framework.
Strategy realigned $30 million to raise its cash reserves. With that, the market intelligence solutions provider and Bitcoin development company now has around $5.1 billion in US dollar reserves, which is enough to cover four years of annual interest and dividend payments. Meanwhile, it has kept approximately $1.61 billion for future Bitcoin purchases.
Crypto Community Feedback
Strategy’s resumption of its Bitcoin purchases has brought renewed optimism in some members of the crypto community. They viewed it as a strong vote of confidence in the market, signaling that institutional buying power remains intact amid the broader macroeconomic uncertainty.
It’s worth noting that before its latest Bitcoin purchase, the last time Strategy bought BTC was on June 22. During that period, it acquired 520 BTC for $35 million. Then, a string of four Bitcoin sales ensued, totaling 6,916 BTC for an aggregate of $428 million as the asset fell to roughly $59,256 per coin.
Many criticized the company, though, for its poorly timed transactions. They pointed out that it was selling instead of buying more BTC when it bottomed in August. After that, it only decided to buy more when Bitcoin passed the $80,000 mark for the first time since May.
Nonetheless, Executive Chairman Michael Saylor claimed that Strategy’s metrics indicate strength, especially in STRC.
