Strategy ($MSTR) Spends $168 Million On More Bitcoin

Strategy, the bitcoin treasury company led by Executive Chairman Michael Saylor, purchased $168.4 million in bitcoin last week, continuing its long-running accumulation strategy despite ongoing volatility in the crypto market.

The company disclosed that it acquired 2,486 BTC over the past week, expanding its already sizable holdings. The company’s total bitcoin reserves now stand at 717,131 BTC, making it one of the largest corporate holders of bitcoin globally.

According to the company, the full position has been accumulated for $54.52 billion, representing an average purchase price of $76,027 per bitcoin. 

With bitcoin currently trading around $68,000, Strategy’s holdings sit below its aggregate cost basis. The difference implies an unrealized loss of roughly $8,000 per coin, or approximately $5.7 billion across the company’s total stack.

Saylor confirmed the latest purchase in a statement posted Tuesday, noting that Strategy continues to build its bitcoin position as part of its broader corporate treasury strategy. The company has consistently added bitcoin through market cycles, framing the asset as a long-term reserve holding.

Strategy accounted for more than 90% of net new public-company purchases in January. Public companies now hold about 1.13 million BTC total, with Strategy controlling nearly two-thirds, while also expanding its influence through hybrid digital credit instruments like STRC and STRF. 

Strategy’s common stock sales

The filing also detailed how the most recent purchases were financed. The company said the bitcoin buys were funded through $90.5 million in proceeds from common stock sales, alongside $78.4 million raised from sales of its STRC preferred series. 

The company has relied on a mix of equity issuance and other financing tools in recent years to support its bitcoin accumulation program.

Strategy’s approach has drawn both strong support and criticism from market participants. Advocates view the company as a pioneer in institutional bitcoin adoption, while skeptics point to the risks of leveraging corporate capital markets activity to increase exposure to a volatile asset.

The purchases come at a time when bitcoin has traded well below record highs, putting pressure on companies with large treasury allocations. Its average acquisition cost now exceeds the current market price, highlighting the drawdowns that can occur even for firms that have built positions over multiple years.

In equity markets, Strategy shares reflected continued investor caution. MSTR stock was down 3.2% in premarket trading Tuesday and has declined more than 60% year-over-year, according to market data. 

Last Friday, shares of MSTR surged over 10%.

Despite the near-term losses implied by Bitcoin’s pullback, the company has maintained its commitment to holding and acquiring more BTC. The company has repeatedly stated that it views bitcoin as a long-duration asset and a central pillar of its balance sheet ideas.