- Strategy has acquired 20,356 BTC for nearly $2B, bringing its total holdings to 499,096 BTC, which is roughly 2.3% of Bitcoin’s supply.
- The purchase was financed via a zero-coupon convertible note offering, continuing the company’s accumulation strategy using debt and equity offerings.
- BTC dropped from $95K to $91K in 24 hours, and the total crypto market cap fell below $3T, signaling a broader market downturn.
It’s not Monday if Michael Saylor’s Strategy (MSTR) has not bought Bitcoin (BTC) despite current market conditions.
The business intelligence firm, formerly known as MicroStrategy, acquired 20,356 additional BTC at an average price of $97,514 (AU$153.8K). The purchase was valued at nearly US$2B (AU$3.15B) and was funded through a zero-coupon convertible note offering. This brings the company’s total Bitcoin reserves to 499,096 BTC.
Strategy now holds over 2.3% of Bitcoin’s fully diluted supply, which is capped at 21 million BTC. As per BitcoinTreasuries, only BlackRock’s iShares Bitcoin Trust (IBIT) has a larger share, accounting for approximately 2.8% of all existing Bitcoin.
Related: SEC Crypto Task Force Forms Cyber and Emerging Technologies Unit (CETU) to Combat Fraud
The weekly purchases, performed every Monday, started in November 2024, with Saylor, the Executive Chairman at the company, announcing the purchases on his X account (formerly Twitter).
The company’s accumulation strategy relies on a mix of debt and equity offerings, which has fueled its rapid stock market growth in recent years. While Bitcoin acquisitions have significantly boosted Strategy’s market capitalization, it hasn’t come without criticism, and many market observers are questioning the long-term sustainability of its aggressive investment approach.
Despite the latest Bitcoin acquisition, Strategy’s stock fell by approximately 5.7% on Monday, though it remains up more than 300% over the past year.
And what’s going on with Bitcoin and the crypto market? Nothing good. BTC went from US$95K (AU$149K) to US$91K (AU$143K) within 24 hours.
Meanwhile, the crypto market cap has fallen below the US$3T (AU$4.73T) mark, currently at US$2.98T (AU$4.42T).
Related: Can Bitcoin Push Past US $180K? Financial Giants Say Yes
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