Bitcoin-focused company Strategy (formerly MicroStrategy) has expanded its massive Bitcoin treasury with the acquisition of 7,633 BTC for approximately $742.4 million. According to an 8-K filing with the U.S. Securities and Exchange Commission (SEC) on Monday, the purchase was made between February 3 and February 9 at an average price of $97,255 per Bitcoin.
With this latest addition, Strategy now holds a staggering 478,740 BTC, worth over $46 billion at current market prices. Co-founder and Executive Chairman Michael Saylor revealed that the company’s total Bitcoin holdings were acquired at an average price of $65,033 per BTC, amounting to a total investment of approximately $31.1 billion. This positions Strategy as a dominant institutional holder, controlling over 2.2% of Bitcoin’s fixed 21 million supply.
Aggressive Bitcoin Accumulation Strategy
The recent Bitcoin acquisition follows the sale of 516,413 shares of its Class A common stock, raising $179 million, along with 7.3 million shares of its 8.00% Series A Perpetual Strike Preferred Stock, generating $563.4 million. Strategy confirmed that as of February 9, approximately $4.17 billion worth of shares remain available for sale as part of its ambitious “21/21 Plan,” which aims to raise $42 billion in capital for further Bitcoin purchases.
Michael Saylor has continued to signal additional acquisitions, teasing upcoming purchases on social media. The company, which officially rebranded as Strategy last week with a new Bitcoin-inspired logo, has acquired roughly $20 billion worth of Bitcoin in recent months despite a temporary pause in its 12-week buying streak due to its earnings report.
Financial Performance and Accounting Implications
Despite its aggressive Bitcoin strategy, Strategy reported a net loss of $670.8 million in Q4 2024, with operational expenses surging 693% year-over-year to $1.1 billion. Notably, impairment losses on Bitcoin holdings totaled over $1 billion. However, upcoming Financial Accounting Standards Board (FASB) fair-value accounting changes, effective January 2025, will allow Strategy to adjust its Bitcoin valuation upward, resulting in a one-time cumulative adjustment of $12.75 billion to retained earnings.
With regulatory uncertainties, particularly regarding tax treatment under the 2022 Inflation Reduction Act, Strategy’s aggressive Bitcoin purchases continue to be a subject of market debate. Despite this, its market capitalization has surged to $82.3 billion, with shares gaining over 518% in the past year. As of Monday pre-market trading, Strategy’s stock (MSTR) was up 1.9%, reflecting investor confidence in its Bitcoin-first approach.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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