.png){kind=logo}
Between November 10 and November 16, Strategy has made another significant Bitcoin purchase. Despite concerns about the crypto market entering a potential bear phase, Michael Saylor’s company continued its streak of buying Bitcoin.
Strategy purchased 8,178 BTC for $835.6 million, at an average price of $102,171 per Bitcoin. This purchase brings Strategy's total holdings to 649,870 BTC, acquired for approximately $48.37 billion. The company's Bitcoin yield year-to-date stands at 27.8%.
Saylor had hinted at the purchase earlier, posting an update on the company’s BTC portfolio with the phrase “Big week.” This acquisition follows a series of incremental Bitcoin purchases dating back to early October. However, the timing of this large purchase comes amid a difficult phase for both the cryptocurrency market and Strategy’s stock price.
The recent purchase occurred despite a significant drop in the company's stock value. Strategy's stock, which trades under the ticker symbol MSTR, has suffered significant losses. In the last month, the stock has fallen more than 30%, and it has dropped close to 20% in the last five days.
At the time of writing, the stock was trading for close to $194, down 4% from the previous day. As Bitcoin’s price fluctuates, the company’s stock has struggled to maintain its value, reflecting investor concern about Bitcoin’s future performance.
According to veteran trader Peter Brandt, there is a possibility that Bitcoin’s price could fall below Strategy’s average purchase price. This would further affect the company’s financial standing, especially as Bitcoin constitutes a significant portion of its assets.
Strategy funded this latest Bitcoin purchase through the proceeds of preferred stock offerings. The company raised $704 million from its STRE offering and an additional $136.1 million from the sale of shares in other stock series such as STRF, STRC, and STRK. This marks the company’s largest Bitcoin purchase since July, when it acquired $2.46 billion worth of Bitcoin.
The ongoing decline in MSTR stock has made issuing common stock less viable. As a result, the company turned to preferred stock issuance as a way to secure the necessary funds for the purchase.
Strategy’s Bitcoin holdings are now valued at approximately $48.37 billion, with an average purchase price of $74,433 per Bitcoin. Despite recent losses, the company remains committed to expanding its cryptocurrency portfolio.
Also Read: MicroStrategy's Bitcoin Strategy: Will a Price Surge Raise its Valuation?
