Strategy Acquires 7,633 Bitcoin For $742.4 Million, Boosts Holdings To 478,740 BTC

by Murtuza Merchant Benzinga Staff Writer

Zinger Key Points

The company funded the purchase through proceeds from recent stock sales and a public offering of preferred stock.
As of February 9, MicroStrategy held approximately 478,740 Bitcoins at an average purchase price of $65,033 per coin.
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Strategy Inc. MSTR has expanded its Bitcoin BTC/USD holdings with a significant new purchase, acquiring 7,633 BTC for approximately $742.4 million at an average price of $97,255 per Bitcoin.

What Happened: The acquisition, made between Feb. 3 and Feb. 9, was funded through proceeds from stock sales under its $21 billion equity offering program and its recently completed $563.4 million preferred stock offering.

With this latest purchase, Strategy now holds a total of 478,740 BTC, acquired at an average cost of $65,033 per Bitcoin.

Michael Saylor, Strategy's co-founder and executive chairman, has remained vocal about the company's long-term commitment to Bitcoin, often describing it as the best store of value in the digital age.

The latest acquisition further cements Strategy’s position as the largest corporate holder of Bitcoin, aligning with its strategy of using public and private funding to accumulate the cryptocurrency.

Also Read: Coinbase CEO Brian Armstrong Says Bitcoin Adoption To Reach ‘Billions’ By 2030

Why It Matters: The company has consistently leveraged equity sales and debt offerings to fund its purchases, a strategy that has significantly influenced its stock price movements.

The firm has $4.17 billion in shares still available for sale, indicating that additional Bitcoin purchases may be forthcoming.

Strategy Inc.’s bold Bitcoin accumulation strategy has received mixed reactions from analysts.

Mizuho recently began covering the stock with an ‘outperform' rating and set a price target of $515, describing the company as a “Lever for the Believer” in Bitcoin, emphasizing its appeal to investors who view Bitcoin as a long-term asset.

Despite this optimism, questions persist regarding the sustainability of Strategy’s valuation, particularly in relation to the value of its Bitcoin holdings.

Some market observers have raised concerns about whether the company's stock price accurately reflects its assets

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