Strategy, continuing its Bitcoin accumulation strategy without slowing down, has crossed another significant threshold with its latest purchase. The company, formerly known as MicroStrategy, announced that it purchased 22,305 Bitcoin between January 12-18. According to a filing with the US Securities and Exchange Commission (SEC), approximately $2.13 billion was spent on this purchase, with an average cost of $95,284 per Bitcoin. This brings the company's total Bitcoin holdings to 709,715 BTC.
The total value of all their Bitcoins has exceeded $64 billion
With this latest move, the total cost of Strategy's Bitcoin portfolio is approximately $53.9 billion, with an average purchase price of $75,979. Considering current prices, the market value of the Bitcoins held by the company has exceeded $64 billion. This indicates a gain of over $10 billion on paper. This amount corresponds to more than 3% of Bitcoin's total supply of 21 million.
Michael Saylor, the company's co-founder and CEO, signaled this purchase via X over the weekend. Saylor shared an image showing Strategy's Bitcoin portfolio, simply using the phrase "₿igger Orange." This post reinforced expectations of a larger purchase, surpassing the 13,627 BTC acquisition made two weeks ago. This Bitcoin purchase coincided with a period of increased market volatility. Bitcoin retreated from its peaks above $97,000 earlier in the year, falling to levels around $90,500. This decline was influenced by the uncertainty surrounding the US's new tariff plan targeting European countries and the expected Supreme Court ruling on the matter. The tariffs, covering France, Germany, the United Kingdom, and the Scandinavian countries, could go into effect on February 1st. These regulations bring the legal aspects of trade policies, first raised during the Donald Trump administration, back to the forefront.
The pullback in Bitcoin was also reflected in Strategy shares. Shares of the company, trading under the ticker symbol MSTR, fell approximately 5% in pre-market trading to around $165. Despite this, the stock remains up over 12% year-to-date. Institutional interest continues; Vanguard Group announced a purchase of approximately $200 million worth of MSTR through its Value Index Fund, while VanEck also announced it is among Strategy's largest shareholders. Strategy's recent acquisitions are closely linked to the company's aggressive capital structure strategy. The Bitcoin purchases are financed with funds from the issuance of Class A common stock MSTR, as well as perpetual preferred shares under the ticker symbols STRK, STRC, STRF, and STRD. This structure is part of the company's "42/42" plan, which aims to raise a total of $84 billion in capital by 2027. Strategy, however, maintains its long-term perspective. Saylor had previously stated that the company's capital structure was designed to withstand even a 90% drop in Bitcoin, a scenario that could last for years. Nevertheless, it appears that a volatile period is ahead for investors in the short term.
