Strategy Bets Bigger on Bitcoin with 1,955 Purchase as Stock Slides

Software intelligence firm Strategy has doubled down on its Bitcoin strategy with yet another purchase, marking its sixth straight week of accumulation. The move comes just days after the firm failed to secure a place in the S&P 500, a disappointment that weighed heavily on its stock. 

Strategy Made Another Big Bitcoin Purchase with Share Sales 

In its latest update, Strategy revealed it acquired 1,955 BTC for $217.4 million last week at an average price of $111,196 per coin. 

With this addition, the company’s Bitcoin reserves have grown to 638,460 BTC, worth a staggering $41.17 billion based on an average purchase price of $73,880. Year-to-date, its Bitcoin portfolio has returned a yield of 25.8%.

Funding these purchases has required the company to once again turn to its own stock. An SEC filing shows that the Nasdaq-listed firm raised $200.5 million from the sale of 591,606 MSTR shares. 

It also secured $11.6 million from STRF sales and $5.2 million from STRK sales. This marks a return to the very strategy it had previously promised to avoid: selling common stock at times when its market value ratio is below 2.5x.

Strategy Misses Out on the S&P 500 Listing, Stock Lags Behind Bitcoin’s Rally 

The timing of the latest crypto purchase is notable. Last week, Strategy was left out of the S&P 500 despite meeting the index’s formal requirements. 

Instead, the committee chose Robinhood, AppLovin, and Emcor, passing over the Michael Saylor-led company. The decision hit MSTR shares hard, dragging them down by more than 10% over the past month and by over 2% in premarket trading today.

What makes the situation more striking is the gap between Bitcoin’s movement and Strategy’s stock. The top coin surged above $112,000 today, breaking a new level of strength. Yet, MSTR has failed to follow suit. 

According to TradingView data, the stock is trading around $327, down from $335 at last week’s close. Investors appear cautious, focusing more on the company’s stock dilution and missed S&P 500 opportunity rather than the rising value of its Bitcoin portfolio.

Strategy Now Holds Over 3% of Bitcoin Supply

Michael Saylor, Strategy’s co-founder and executive chairman, had hinted at this new purchase in a recent X post.  This came after the U.S.-based firm deepened its Bitcoin bet with the purchase of 4,048 BTC worth $449 million. 

With this latest acquisition, Strategy controls more than 3% of the total Bitcoin supply. This makes the company one of the most influential players in the digital asset space. 

While its stock may be under pressure, the company continues to steadily accumulate Bitcoin. This shows that its leadership remains firmly committed to the long-term vision of making Bitcoin the centerpiece of its balance sheet.