Strategy Spent Another $27 Million on Bitcoin Before It Crashed
Strategy, the world’s largest corporate holder of Bitcoin, purchased 220 Bitcoin last week for $27 million at an average price of $123,500 per coin, prior to Bitcoin’s price drop. This purchase, one of its smallest this year, brought Strategy’s total holdings to 640,250 Bitcoin, worth about $73 billion at current prices. The firm’s average cost per Bitcoin is now over $74,000. The recent acquisition was funded through the sale of $1.7 million in STRK, $17.1 million in STRF, and $6.9 million in STRD preferred shares. Recently, Strategy’s Bitcoin purchases have been smaller when funded solely by preferred shares, compared to when it issues common shares at a premium. Bitcoin’s price fell 8% over the past week to around $115,000, while Strategy’s stock dropped 15% in five days, now trading near $304.78. Increased competition among Bitcoin treasury firms saw only Empery Digital outperform Bitcoin last quarter, while Strategy’s stock underperformed, reducing its share valuation premium relative to Bitcoin holdings.
