TLDR
- Strategy purchased 17,994 Bitcoin for $1.28 billion at an average price of $70,946 per coin.
- The company increased its total holdings to 738,731 BTC at a total cost of $56.04 billion.
- Strategy funded the acquisition through $900 million in common stock sales and $377 million in preferred stock sales.
- The latest purchase marked its largest Bitcoin acquisition since January.
- Strategy’s holdings now represent about 3.7 percent of Bitcoin’s circulating supply.
Michael Saylor’s Strategy expanded its Bitcoin reserves with a $1.28 billion purchase last week. The company acquired 17,994 BTC at an average price of $70,946 per coin. As a result, total holdings reached 738,731 BTC as Bitcoin traded below $68,000.
Strategy Increases Bitcoin Holdings With $1.28 Billion Acquisition
Strategy confirmed the purchase in a filing with the US Securities and Exchange Commission on Monday. The company bought 17,994 Bitcoin for $1.28 billion during the reporting period. It paid an average price of $70,946 per coin, according to the filing.
The purchase pushed total holdings to 738,731 BTC at an aggregate cost of $56.04 billion. Strategy reported an overall average acquisition price of $75,862 per Bitcoin. The latest buy came in below that average cost basis.
Strategy funded most of the acquisition through equity sales during the week. The company raised $900 million from common stock sales to support the purchase. It also secured $377 million from sales of its STRC preferred stock series.
The company stated that the purchase marked its largest Bitcoin acquisition since January. In January, Strategy acquired 22,305 BTC for $2.13 billion at $95,284 per coin. The latest transaction occurred while Bitcoin traded near $67,000 for much of the week.
Bitcoin Supply Dynamics and Market Data
Strategy completed five acquisitions during the current below-cost period since Feb. 9. The company bought 25,229 BTC across those transactions during this timeframe. Its average cost basis declined from $76,052 to $75,862 during that period.
During 2022 and 2023, Strategy executed seven smaller purchases in similar below-cost conditions. The company acquired 28,560 BTC across those earlier transactions. This latest purchase exceeded the pace of its prior buying activity.
Market data shows that miners produce about 450 BTC per day. That output equals roughly 3,150 BTC entering circulation each week. Strategy’s purchase equaled nearly five weeks of newly mined Bitcoin supply.
Strategy’s holdings now represent about 3.7% of Bitcoin’s circulating supply. Circulating supply is expected to reach 20 million coins on Monday. At publication, Bitcoin traded at $67,725, up 2.4% over seven days.
Strategy shares rose 0.2% in pre-market trading following the disclosure. Over the past week, MSTR shares gained 3.6% and closed at $133.5 on Friday. The company disclosed the acquisition details in its Monday filing.
