Strategy Boosts Bitcoin Holdings: Adds 397 BTC, Surpasses 641K Total Coins
Strategy (MSTR), recognized as the largest corporate holder of Bitcoin, has made headlines with its recent acquisition of 397 BTC. This purchase, amounting to $45.6 million, occurred last week and marks a significant increase in the company’s total Bitcoin holdings, now exceeding 641,205 coins valued at over $69 billion.
Recent Acquisition Details
The latest Bitcoin acquisition was completed at an average price of $114,771 per coin. This financial move primarily stemmed from the sale of common stock, along with a minor issuance of various preferred shares.
Market Trends and Company Guidance
As Bitcoin’s price fluctuates, the cryptocurrency was trading below $108,000 at the time of reporting. Alongside its third-quarter earnings release, Strategy declared that it would refrain from raising funds through common stock sales unless its enterprise value exceeded 2.5 times the value of its Bitcoin holdings.
Current Valuation Challenges
Due to a persistent decline in MSTR’s share price, the minimum net asset value (mNAV) now sits slightly above 1x. This scenario poses a challenge for future Bitcoin purchases as significant share sales are unlikely for the near future.
Stock Performance
- MSTR is experiencing a premarket decline of 1.7%.
- Bitcoin holdings increased to 641,205 coins worth over $69 billion.
- The average purchase price of recent Bitcoin acquisitions is $114,771.
With its strategies in place, Strategy continues to navigate the complexities of the cryptocurrency market, reinforcing its position as a dominant player in the Bitcoin landscape.
