Strategy Expands Bitcoin Holdings With New $980M Buy

Strategy has once again strengthened its position as the largest corporate holder of Bitcoin (BTC) by acquiring another large amount. Between December 8 and December 14, the company bought 10,645 BTC for around $980.3 million, paying an average of $92,098 per Bitcoin. 

Strategy Now Owns 671,268 Bitcoin

According to an 8-K filing with the United States Securities and Exchange Commission (SEC), Strategy’s total Bitcoin holdings rose to 671,268 BTC, worth about $60 billion at current market prices. The company’s average purchase price for all its Bitcoin now is $74,972 per Bitcoin, which puts Strategy in profit despite Bitcoin’s volatility.

The Nasdaq-listed firm now controls over 3% of the total 21 million Bitcoins available. At current market prices, the firm has about $9.7 billion in unrealized gains, reflecting the size of its bets on the leading cryptocurrency.

Notably, the funds for this latest Bitcoin purchase came from various capital market activities. This included issuing and selling Strategy’s Class A Common Stock (MSTR) and preferred stock. Undoubtedly, this method fits with the company’s goal of increasing its Bitcoin reserves while using equity and hybrid financing. 

As Bitcoin adoption increases globally, driven by exchange-traded funds (ETFs) and clearer regulations, Strategy remains in a strong position. No doubt, Strategy has already linked its future to Bitcoin’s long-term success.

Strategy Highlights Resilience as BTC Market Faces Volatility

It is worth noting that the firm’s ongoing purchases and strong capital structure play a key role in Bitcoin’s market perception.

In the same month, Strategy purchased 10,624 BTC for about $962.7 million, at an average price of $90,615 per coin. The company has also established a $1.44 billion cash reserve to support dividend payments and interest obligations. Analysts note that this reserve covers the firm’s commitments for the next 18 months.

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.

Strategy Continues Bitcoin Purchase

Strategy’s actions continue a recognizable pattern. In November, the company skipped its usual purchase after completing one of its largest buys. It acquired 8,178 BTC for $836 million using funds raised from its STRE offering.

Strategy has repeatedly said it will continue accumulating Bitcoin even during a bear market. It has pointed to its actions during the 2022 crypto winter, when it kept buying even as Bitcoin traded below its average purchase price.