Strategy Unleashes $370M Bitcoin Buying Spree
Strategy, led by Michael Saylor, has acquired 4,603 Bitcoin for $370 million, marking its first corporate purchase since June. The average price of each BTC was $80,318. This significant purchase brings Strategy's total holdings to 845,050 BTC, acquired at an average price of $75,413, with a total value of $63.3 billion.
The funding for this acquisition came from the net proceeds of a 602 million MSTR common stock sale. The company used some of these funds to increase its USD Cash reserve and repurchase STRC preferred stock. This move signals that Strategy is resuming its accumulation of Bitcoin, as indicated by Saylor's tweet 'We're Back' on Sunday.
Strategy's perpetual preferred stock, STRC, gained 0.44% in pre-market activity after the news. However, trading below par limits the company's ability to raise funds through STRC sales and may force it to increase its nominal dividend rate to attract buyers.