Decoding Strategy’s [MSTR] 168-Bitcoin buy amid market volatility

Key Takeaways

How does Strategy fund its Bitcoin purchases?

The purchases are funded through at-the-market (ATM) sales of its perpetual preferred stocks (STRK, STRF, STRD, STRC) and its broader “42/42” equity plan.

How did the market react to Strategy’s purchases?

MSTR stock traded at $296.61, up 2.33%, while Bitcoin was at $107,792.91 after a 3.14% drop in 24 hours.

Bitcoin [BTC] treasury giant Strategy (formerly MicroStrategy) continues its aggressive accumulation strategy despite market volatility.

Last week, the company purchased 168 BTC for approximately $18.8 million at an average price of $112,051 per coin. This purchase was made after the market sell-off triggered by the Black Friday crypto crash on the 10th of October. 

Between the 13th and the 14th of October, the company completed the acquisition. As a result, Strategy now holds a total of 640,418 BTC. 

And the average cost across all purchases stands at $74,010 per BTC.

Strategy’s funding tactics

Strategy funded its latest Bitcoin acquisitions using proceeds from at-the-market (ATM) sales of its perpetual preferred stocks, STRK, STRF, and STRD.

The company’s ATM programs include $21 billion for STRK, $4.2 billion for STRF, and $4.2 billion for STRD, alongside $2.1 billion for STRC, supplementing its broader “42/42” plan.

This initiative, upsized from the original “21/21” strategy, aims to raise a total of $84 billion in equity offerings and convertible notes for Bitcoin purchases through 2027. This reflects Strategy’s commitment to long-term accumulation.

The announcement coincided with Strategy’s MSTR stock trading at $296.61, marking a 2.33% gain according to Google Finance.

Strategy’s rising confidence in Bitcoin

While critics like gold advocate Peter Schiff questioned the timing and average purchase price, Strategy remains a benchmark for institutional Bitcoin adoption.

Additionally, data from BitBo shows the company holds 640,031 BTC, valued at roughly $71.84 billion, making it the world’s largest corporate Bitcoin holder.

Finally, CoinGecko’s Bitcoin Treasury Holdings data further confirms the firms’s leading position, highlighting its role as a trailblazer in integrating Bitcoin into corporate reserves.