Key Takeaways:
- After a 10-week Bitcoin accumulation hiatus, Strategy acquired 4,603 BTC at $369.7 million.
- The company sold 4.53 million Class A shares with proceeds of $602.8 million of which part was spent on the BTC purchase.
- Strategy now holds 845,050 BTC, acquired for $63.73 billion at an average cost of $75,412 per coin.
The company has returned to the Bitcoin accumulation since it recently sold BTC, bought dollars and settled its preferred stock payments. The purchase comes after Michael Saylor’s “We’re ₿ack” tweet that had been leading to speculation that the company would re-enter the market.
Strategy Buys 4,603 BTC
From August 24 to 30, Strategy bought 4,603 BTC at an average price of $80,318 per BTC, according to a filing published Monday.
The $369.7 million purchase is the biggest Bitcoin purchase since late June, when the company halted buying for nearly 10 weeks. That week, the transaction was financed from sales of 4,531,421 Class A shares, and resulted in net proceeds of $602.8 million.
The remainder of the funds were distributed to a number of other areas. It repurchased $151.8 million worth of 1,557,177 STRC preferred shares and $50.7 million in STRC dividends. There was an additional $30 million added to cash.
Read More: Ripple CEO Takes Aim at Saylor as Utility Beats Financial Engineering in Crypto Battle
Bitcoin Holdings Reach 845,050 BTC
Strategy currently has 845,050 BTC, valued at $63.73 billion. The company’s average price to acquire a Bitcoin is $75,412.
The overall bitcoin treasury of Strategy is approximately 4.9% higher than the total cost of its purchases, with the price of bitcoin trading at around $79,087. The most recent purchase is now trading at a loss, however. The purchased coins cost about $5.7 million with a 1.5% loss at the quoted Bitcoin price of $80,318 per BTC.
The gap shows that Strategy has made a significant purchase of Bitcoin, even though its holdings are worth more than the total amount it’s bought for.
Cash Reserves Stay in Focus
The change in Bitcoin buying comes after a time when Strategy was a net seller, boosted up its dollar reserves and serviced obligations tied to its favored stock.
At the end of the week, dollar reserves stood at $5.10 billion, of which $1.61 billion was in cash. Net leverage stood at zero. The recent deal marks a shift in Strategy’s Bitcoin stance, but the firm has continued to invest significant amounts in its preferred-stock approach.
Investors will now be waiting to see if Strategy will continue to fund its Bitcoin purchases by selling shares. The diluting effect of each new tranche, and the need to have MSTR trading at a premium to net asset value in order for the strategy to be effective.
The upcoming filing will reveal not only whether this is the beginning of a new Bitcoin accumulation cycle, but if it is a one-time return after the summer hiatus.
Read More: Strategy Shuts Down Bitcoin Exit Rumors, Hinting at Another Massive BTC Buy
