Strategy Buys $962.7M in Bitcoin, Its Biggest Purchase Since July

Strategy revealed that it bought over 10,600 Bitcoin (BTC) in early December, its biggest purchase since July. This acquisition comes despite the sharp drop in the digital asset’s price and growing fear across the crypto market. 

This move further reinforces the firm’s reputation as the most Bitcoin-focused public company in the world.

Strategy’s Total Holdings Reach 660,624 Coins

Between December 1 and December 7, Strategy purchased 10,624 BTC for about $962.7 million, at an average price of $90,615 per coin. This figure was revealed in a recent filing with the U.S. Securities and Exchange Commission (SEC). 

With this new purchase, Strategy now owns 660,624 Bitcoins, worth about $60 billion at today’s prices. Strategy’s total crypto holding represents more than 3% of Bitcoin’s total supply and implies paper gains of around $10.6 billion. 

Meanwhile, Strategy’s shares have experienced volatility alongside Bitcoin. The stock closed down 3.8% last week but showed a modest pre-market gain of 2.4% earlier today. So far this year, MSTR is still far below its highest value, showing the bigger problems faced by companies that own a lot of Bitcoin.

Strategy Sets Up Cash Reserve and Funding for Bitcoin Purchases

Strategy operates multiple preferred stock programs, including STRK, STRC, STRF, and STRD, with total potential capital of more than $31 billion. Its latest acquisitions were funded through at-the-market sales of Strategy’s Class A common stock (MSTR) and perpetual preferred stock (STRD). 

These programs are part of the company’s broader “42/42” plan, aiming to raise a total of $84 billion for Bitcoin acquisitions through 2027. This is double the initial $42 billion target.

The Nasdaq-listed firm has also established a $1.44 billion cash reserve to support dividend payments and interest obligations. Analysts note that this reserve covers the company’s commitments for the next 18 months. The first debt maturity is not due until February 2027. 

Therefore, Strategy does not need to sell Bitcoin to meet its current obligations. Some market observers interpret the reserve as preparation for potential Bitcoin price volatility, projecting a range between $55,000 and $70,000 next year.

Strategy Highlights Resilience as Bitcoin Market Faces Volatility

Strategy’s ongoing purchases and strong capital structure play a key role in Bitcoin’s market perception. Its executives said that the company can withstand severe market downturns, even if the top coin were to drop significantly over several years. 

However, they note that shareholders could experience losses under such conditions. Right now, Strategy’s market value compared to its Bitcoin holdings has gone down, following a wider trend in companies holding digital assets. 

Many similar companies are also seeing their market value drop. Experts say companies first bought Bitcoin to diversify, but now investors are concerned more about long-term plans than short-term gains.