Strategy Buys More Bitcoin Worth $75.3M Amid Market Dip

Virginia-based company Strategy has once again made news in the cryptocurrency market. Between January 26 and February 1, the company bought Bitcoin (BTC) worth $75.3 million during a broad crypto market slowdown. This move reflects that Strategy remains firm in its long-term belief in Bitcoin, even as short-term market pressure grows.

Strategy Used Shares Proceeds to Buy More Bitcoin

According to a recent filing with the U.S. Securities and Exchange Commission (SEC), Strategy bought 855 Bitcoin for a total of $75.3 million, at an average price of $87,974 per Bitcoin. With this, the Nasdaq-listed firm’s total Bitcoin holdings increased to 713,502 BTC, worth approximately $56 billion. 

The company has invested a total of $54.3 billion in Bitcoin, considering all fees and expenses, with an average purchase price of $76,052 per Bitcoin. Interestingly, this careful buying strategy shows the company’s long-term trust in Bitcoin’s value.

Notably, Strategy now controls over 3.4% of the total 21 million Bitcoins available. It is also worth noting that the funds for this latest purchase came from several capital market activities. This included issuing and selling Strategy’s Class A Common Stock (MSTR). Undoubtedly, this method fits with the company’s goal of increasing its Bitcoin reserves while using equity and hybrid financing.

Strategy’s Capital Structure Built to Withstand Market Stress

Recent data from Bitcoin treasury trackers shows that nearly 200 public companies now hold Bitcoin in some form. However, Strategy remains far ahead of its peers.

Michael Saylor, the company’s chairman, has repeatedly stated that Strategy’s capital structure is built to survive extreme market stress. According to him, the mix of equity, convertible debt, and preferred stock could withstand a prolonged Bitcoin price decline of up to 90% lasting several years.

Even so, he acknowledged that shareholders would experience significant pain under such conditions. In the near term, market pressure remains visible.

Strategy CEO Explains Bitcoin Holdings Plan

Recall that Strategy’s CEO Phong Le explained how the company stays committed to BTC while managing its finances carefully. In an interview, Le explained that the company would only consider its Bitcoin under particular conditions. This would occur if Strategy’s stock price fell below its net asset value and if new sources of capital were no longer available.

In such a situation, selling Bitcoin would become necessary to protect the yield per share linked to the flagship cryptocurrency. He stressed that his action would be a last resort rather than a change in company policy. Furthermore, he highlighted the importance of prioritizing financial discipline over emotion during hostile market conditions.