TLDR
- Strategy bought 10,624 Bitcoin tokens for $962.7 million between December 1-7 at $90,615 per token
- Total holdings now at 660,624 BTC worth over $60.6 billion with average cost of $74,696 per token
- December purchase is largest in Q4, up from just 130 tokens bought in previous two weeks
- Stock rose 1.9% in premarket trading but remains 61% below July highs
- Purchase funded through equity ATM offerings and preferred share sales
Strategy ended its buying pause with a bang last week. The company purchased 10,624 Bitcoin tokens worth $962.7 million.
The buying spree ran from December 1 through December 7. Strategy paid an average of $90,615 per token.
MicroStrategy Incorporated, MSTR
That price sits well below Bitcoin’s October high above $126,000. The cryptocurrency has dropped 27% from that peak.
Strategy revealed the purchase in a Monday securities filing. The company now holds 660,624 Bitcoin tokens total.
The current value tops $60.6 billion. Strategy’s average cost across all purchases is $74,696 per token.
Shares jumped 1.9% to $182.38 in premarket trading Monday. But the stock still trades 61% below its July record.
Why This Purchase Matters
The December buy represents a major strategy shift. Strategy bought only 130 tokens in the two weeks ending November 30.
Chairman Michael Saylor and his team sat on the sidelines during Bitcoin’s recent volatility. Now they’re back in action.
The latest purchase crushes other Q4 buys. Strategy’s previous quarterly high was 8,178 tokens on November 17. Other weekly purchases ranged from 168 to 525 tokens.
Strategy funded the buy through stock sales. The company used money from common equity ATM offerings and STRD preferred shares.
Cantor Fitzgerald analysts saw this coming. Brett Knoblauch and Gareth Gacetta wrote that Strategy buys Bitcoin when it can expand the company’s mNAV premium.
The mNAV measures how much Strategy trades above its Bitcoin holdings value. That multiple has shrunk as shares fell faster than Bitcoin.
What Investors Need to Know
The analysts kept their Overweight rating but cut their price target. It now sits at $229, down from $560.
Strategy’s purchase shows confidence in Bitcoin’s future direction. The cryptocurrency traded at $91,611 Monday morning.
Bitcoin barely reacted to Strategy’s announcement. The price still hovers near $92,000.
Strategy stock showed more life with a 3% premarket gain. The company’s fate remains tied to Bitcoin’s movements.
Strategy’s buying model focuses on expanding shareholder value. The company buys when purchases can boost its premium to net asset value.
The December purchase signals Strategy sees opportunity at current prices. Bitcoin trading below recent highs created a buying window.
Strategy holds more Bitcoin than any other public company. The 660,624 token position makes it the world’s largest corporate holder.
The company funded its latest purchase without taking on debt. Equity offerings provided the cash for the buy.
Bitcoin traded at $91,611 Monday following Strategy’s disclosure. Strategy stock rose 3% in premarket trading after the announcement.
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