Strategy, a Bitcoin-focused company led by Chairman Michael Saylor, has once again made news in the cryptocurrency market. Between January 5 and January 11, the company bought 13,627 BTC for around $1.25 billion, paying an average of $91,519 per Bitcoin.
Strategy Now Owns 687,410 Bitcoin
According to an 8-K filing with the United States Securities and Exchange Commission (SEC), Strategy’s total Bitcoin holdings rose to 687,410 BTC, worth about $62.3 billion. The company has invested about $51.8 billion in Bitcoin, considering all fees and expenses, with an average purchase price of $75,353 per Bitcoin. Interestingly, this careful buying strategy shows the company’s long-term trust in Bitcoin’s value.
Meanwhile, Saylor affirmed that the recent purchase is their largest in nearly six months. The Nasdaq-listed firm now controls over 3% of the total 21 million Bitcoins available. At currency market prices, the firm has about $10.5 billion in unrealized gains, reflecting the size of its bets on the leading cryptocurrency.
Notably, the funds for this latest purchase came from several capital market activities. This included issuing and selling Strategy’s Class A Common Stock (MSTR) and preferred stock (STRC). Undoubtedly, this method fits with the company’s goal of increasing its Bitcoin reserves while using equity and hybrid financing.
Strategy CEO Explains Bitcoin Holdings Plan
Recall that Strategy’s CEO Phong Le explained how the company stays committed to BTC while managing its finances carefully. In an interview, Le explained that the company would only consider its Bitcoin under particular conditions. This would occur if the company’s stock price fell below its net asset value (NAV) and if new sources of capital were no longer available.
In such a situation, selling Bitcoin would become necessary to protect the yield per share linked to the flagship cryptocurrency. He stressed that this action would be a last resort rather than a change in company policy. Furthermore, he highlighted the importance of prioritizing financial discipline over emotion during hostile market conditions.
Strategy Introduces BTC Credit Dashboard
In response to recent declines in BTC and a sell-off in its digital asset treasury stocks, Strategy introduced a new dashboard called BTC Credit. This move is to reassure investors about the strength of its holdings.
The Virginia-based company maintained that it has sufficient coverage for dividend payments for many years, even if the price of Bitcoin crashes. Le emphasized that Strategy’s debt obligations would remain manageable if the price of Bitcoin fell to its average purchase level of about $75,000.
Le pointed out that the company would still be serviceable even at $25,000 per Bitcoin. At the time of writing, Bitcoin is trading at $90,357.32, down 0.52% in the last 24 hours, according to CoinMarketCap.
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