Strategy has made a strong comeback with large-scale Bitcoin buying activity, announcing a nearly $1 billion BTC purchase for the second consecutive week.
According to filings with the U.S. Securities and Exchange Commission (SEC), the publicly listed company – formerly known as MicroStrategy – purchased an additional 10,645 Bitcoin last week, spending $980.3 million at an Medium price of $92,098 per BTC. The week prior, the company had also purchased 10,624 BTC for a total value of $963 million.
To date, Strategy holds a total of 671,268 BTC , with a total purchase cost of approximately $50.33 billion, equivalent to an Medium Capital of $74,972 per BTC. At the current Bitcoin price of $89,462, this amount of Bitcoin is worth approximately $60 billion.
To finance the BTC purchases, Strategy sold approximately $989 million worth of shares last week, including about $882 million in Class A common stock (MSTR) and $82 million in Series A Stride perpetual preferred stock (STRD), according to SEC filings.
In recent months, Strategy has significantly slowed the pace of its Bitcoin purchases, and the deal announced last Monday marks the company's largest weekly purchase since the end of July.
Strategy's stock has recently plummeted, closing Friday's trading session at $176 – down 21% in a month and as much as 53% in the past six months. Bitcoin has also declined in the last two months, but at a less severe rate: BTC has fallen about 7% in the last 30 days and is down more than 29% from its peak above $126,000 reached in early October.
Earlier this month, Strategy established a $1.4 billion cash reserve to pay dividends and avoid having to sell Bitcoin. However, the company's management acknowledged that during periods of sharp market downturns, they might still be forced to sell crypto.
Strategy warns of "national security" risks if MSCI excludes companies holding crypto.
Cantor Fitzgerald analysts recently dismissed investor concerns about Strategy's Bitcoin buying strategy, particularly worries that the company wouldn't buy when Bitcoin prices corrected.
Nevertheless, many analysts have lowered their price targets for the stock, arguing that the possibility of Strategy being removed from MSCI indices is a negative factor. Last week, Strategy sent an open letter to MSCI, arguing that removing companies holding digital assets from the index could pose a potential threat to “national security” and go against President Trump’s pro-crypto agenda.
