Strategy Expands Bitcoin Holdings with 334 BTC Purchase
Strategy, the investment firm led by Michael Saylor, continued its Bitcoin accumulation with a purchase of 334 BTC last week. The company spent $28.7 million on the crypto asset, acquiring the Bitcoin at an average price of $85,838 per coin. This latest buy increased Strategy's total holdings to 848,000 BTC, with the firm having invested approximately $63.97 billion in Bitcoin at an average cost of $75,440 per coin.
This marks the third consecutive week that Strategy has added to its Bitcoin reserves, following a prior pause in purchases. The firm's current Bitcoin holdings are valued at around $72.9 billion, resulting in an unrealized gain of about $9 billion. In premarket trading, Strategy's shares (MSTR) rose by 2.7%, reflecting a 30% increase over the past month and a 3% gain for the year.
In addition to its Bitcoin purchase, Strategy also repurchased $176.3 million worth of its preferred stock (STRC), which pays a 12% annual dividend. The company bought back about 1.77 million shares of STRC, spending $102.6 million between September 28 and September 30, and an additional $73.7 million for 740,634 shares between October 1 and October 4. The majority of the capital for these buybacks came from the firm's USD Cash pool.
Strategy reported a significant gain of $20.91 billion on its digital assets in the third quarter, with its Bitcoin holdings valued at $70.82 billion as of September 30. The rebound in Bitcoin's value allowed the firm to reverse a $4.12 billion tax asset linked to earlier losses. As of now, Strategy holds a $4.88 billion USD Reserve for dividends and interest, along with $833.4 million in USD Cash.
Another Bitcoin-focused firm, Strive (ASST), made a larger purchase on the same day, acquiring 2,000 BTC worth about $169 million. This purchase was six times the size of Strategy's buy, bringing Strive's total holdings to 29,462 BTC. Chief Executive Matt Cole noted that 61.5% of the capital used for this purchase came from SATA, Strive's preferred stock.