Strategy Deepens Bitcoin Bet With $449M Purchase

Strategy has once again strengthened its position as the world’s largest Bitcoin (BTC) treasury holder. Between August 26 and September 1, the firm purchased 4,048 BTC for about $449.3 million at an average price of $110,981 per coin. This update was revealed in a filing with the U.S. Securities and Exchange Commission (SEC). Bitcoin Treasury Surges Past 636,000 BTC Worth $70B With this acquisition, Strategy now holds a total of 636,505 BTC, worth around $70 billion at the current market price. The company’s average purchase price stands at $73,765 per Bitcoin , for a total investment of roughly $47 billion. This means Strategy is sitting on paper gains of nearly $23 billion. To finance this latest crypto buy, Strategy sold 1,237,000 shares of its Class A common stock, MSTR, for $425.3 million. Strategy still has $16.31 billion available under its at-the-market program. It also sold 199,509 shares of STRK for $19 million, with $20.39 billion remaining in that program. Additionally, Strategy sold 237,931 shares of STRF for $26.5 million, with $1.8 billion left, and 12,973 shares of STRD for $1 million, with $4.17 billion remaining. Strategy Doubles Down on Bitcoin With Bold 42/42 Plan These sales are part of the Nasdaq-listed company’ s expanded “42/42” plan, which aims to raise $84 billion through equity and convertible notes for Bitcoin acquisitions by 2027. The plan was doubled from its earlier $42 billion “21/21” program after the firm quickly used up its equity side. In its Q2 results, Strategy pledged not to issue common stock when its market cap to net asset value (mNAV) ratio is below 2.5x. However, the company reversed course two weeks later, saying it may still issue shares below that threshold if it believes it benefits the business. This move confused investors, but Strategy argued it needed flexibility in capital markets to keep buying Bitcoin. Last week, investors dropped a class action lawsuit that accused Strategy of misleading shareholders about its Bitcoin plans. Strategy Keeps Long-Term Confidence Despite Market Swings While Strategy’s market cap of $94.8 billion trades at a premium to its Bitcoin holdings, its leverage is still seen as manageable. Debt payments are not due until 2028, giving the company breathing room. Co-founder and Chairman Michael Saylor remains confident, stating that his company’s crypto buy does not move the market . He has said the firm’s capital structure could withstand a 90% drop in Bitcoin prices lasting four to five years, though shareholders would feel the pain. Also, Strategy’s stock, MSTR, slumped , closed at $334.41 on Friday, down 1.3% for the day. Over the year, MSTR is up 11.4%, compared to Bitcoin’s 17.4% gain. The company continues to move in lockstep with the cryptocurrency it has tied its future to. The post Strategy Deepens Bitcoin Bet With $449M Purchase appeared first on TheCoinrise.com .