Bitcoin giant Strategy spent another $90 million on BTC last week, but the leading cryptocurrency's decline has put its holdings underwater.
In brief
Publicly traded Bitcoin treasury firm Strategy spent $90 million to purchase 1,142 Bitcoin last week.
The company now holds nearly $50 billion in Bitcoin, but its holdings are worth less than the firm spent on them.
Bitcoin is down over 23% over the last month, recently trading near $69,000.
Strategy, the world's largest Bitcoin treasury company, announced Monday that it bought even more BTC last week even as its nearly $50 billion stash remains underwater following last week's crypto market plunge.
The firm purchased an additional 1,142 Bitcoin last week, currently valued around $79.3 million worth—though that purchase has already lost value. Strategy purchased the coins for approximately $90 million in total, with a cost basis of $78,815 per coin
Strategy—formerly MicroStrategy—sold $89.5 million worth of Class A Common Shares (MSTR) to fund the purchase, and issued no preferred shares during the week.
Now the company holds 714,644 BTC, or about 3.4% of the entire possible Bitcoin supply, currently valued at about $49.6 billion. But the firm spent more than that to acquire the coins, given a current cost basis of $76,056 per coin, giving the firm a roughly $4.8 billion unrealized loss on its holdings.
Bitcoin's recent price decline pushed Strategy's holdings underwater, as the price of the top crypto asset has declined dramatically from an all-time high mark above $126,000 set back in October. The price of Bitcoin dipped to nearly $60,000 last week, but even with the partial rebound, BTC still shows a more than 23% plunge over the last 30 days.
Strategy shares (MSTR) are down about 1.25% on the day, as of this writing, at a current price just above $133. Shares fell to an 18-month low price of $104 last week as Bitcoin plunged, but began rebounding Friday as crypto prices started to recover.