Strategy's Bitcoin Holdings Surpass 848,000 as Stock Rises
MicroStrategy, now operating under the name Strategy (MSTR), saw its stock rise by 2% on Monday following the company's announcement of another significant Bitcoin purchase. The company added 334 BTC to its holdings between September 28 and October 4, bringing its total Bitcoin reserves to a record 848,000 BTC. The latest acquisition cost approximately $28.7 million, with an average price of $85,838.80 per Bitcoin.
The total value of Strategy's Bitcoin holdings now stands at around $73 billion. The company's average purchase price per Bitcoin is $75,440.70, with the total cost of its holdings, including fees and expenses, reaching approximately $64 billion. The latest purchase brings Strategy's Bitcoin holdings to over 4% of the cryptocurrency's 21 million supply cap, implying around $9 billion in paper gains.
Strategy funded the latest Bitcoin acquisition through proceeds from the sale of its Class A common stock and its USD Cash reserve. The company sold 92,894 MSTR shares for approximately $15.7 million during the previous week. As of October 4, Strategy had $18.8 billion worth of MSTR shares available for issuance and sale under its at-the-market program. The remaining $13 million of the Bitcoin acquisition was funded using Strategy's USD Cash holdings.
Strategy also repurchased 1.77 million STRC preferred shares last week for around $176.3 million. The company used $154.1 million from its USD Cash reserve for the latest Bitcoin purchases, with $22.2 million coming from interest earned on its cash, cash equivalents, and short-term investments. As of October 4, Strategy's USD Reserve stood at $4.88 billion, while USD Cash holdings were $833.4 million.
Strategy executive chairman and co-founder Michael Saylor disclosed the company's total Bitcoin holdings and average acquisition price. Saylor also posted a Bitcoin acquisition tracker chart on X with the caption “More orange than ever.” Despite the latest Bitcoin purchases, both Strategy stock and Bitcoin remain below their levels from a year ago. MSTR has gained 3% year to date but has fallen more than 50% over the past 12 months, while Bitcoin has declined around 2% year to date and is down approximately 30% over the past year.