Institutional Bitcoin investor Strategy (formerly MicroStrategy) continues to grow its Bitcoin holdings with a new acquisition. Between October 6th and 12th, the company spent approximately $27.2 million by purchasing an additional 220 BTC at an average price of $123,561. This brings the company's total Bitcoin holdings to 640,250 BTC.
Strategy's Bitcoin Acquisition
Michael Saylor, co-founder and chairman of the board, stated that these acquisitions were made at an average cost of $74,000 per Bitcoin. Strategy's total investment amount is $47.4 billion, and at current prices, this portfolio is worth around $73 billion. This figure represents approximately 3% of the total supply of 21 million Bitcoin. The company carries approximately $25.6 billion in unrealized profits on this holding.
The new acquisitions were financed with proceeds from the sale of Strategy's continuously issued preferred stock. These stock series, codenamed STRK, STRF, and STRD, were launched as part of the company's massive Bitcoin acquisition strategy. STRK, a convertible stock yielding 8% dividends, allows investors to share in the stock's growth. STRF, with its 10% dividend and non-convertible structure, offers a more conservative profile. STRD, with its 10% dividend but non-convertible structure, is considered the stock type with the highest risk-reward balance.
These shares are part of the company's $84 billion capital increase strategy, known as the "42/42 Plan." Strategy aims to grow its Bitcoin holdings through both stock and bond issuances by 2027.
Strategy Leads BTC Treasury Companies
According to market data, 188 publicly traded companies worldwide hold Bitcoin as a reserve asset. Strategy tops this list; It is followed by Marathon Digital (52,850 BTC), Tether-backed Twenty One (43,514 BTC), Metaplanet (30,823 BTC), Bitcoin Standard Treasury (30,021 BTC), and Riot Platforms (24,300 BTC).
The company generated $3.89 billion in unrealized profits from its digital asset portfolio in the third quarter. At the end of the same period, it recorded a $1.12 billion deferred tax expense and a total tax liability of $7.43 billion.
The price of Bitcoin dipped below $105,000 after a sharp sell-off last week. However, it recovered at the beginning of the week, rising above $114,000. Saylor, in a social media post over the weekend, stated that the buying would continue, saying, "Don't Stop ₿elievin'" (don't stop believing). Strategy shares closed down 4.8 percent at $304.79 on Friday, down 13.1 percent for the week. Despite this, the company remains committed to its long-term strategy, aligning with Bitcoin's price.
