Strategy, formerly known as MicroStrategy, has continued its Bitcoin accumulation strategy with another significant weekly purchase, strengthening its position as the leading publicly traded corporation with the largest Bitcoin holdings. This investment comes at a time when both the price of Bitcoin and shares of MSTR have experienced downward pressure, despite their historical tendency to move in tandem.

Strategy Increases Bitcoin Holdings by 4,048 BTC for $444 Million

According to a company announcement, Strategy acquired 4,048 Bitcoins at a total cost of $449.3 million, averaging $110,981 per Bitcoin. The company reported a year-to-date (YTD) Bitcoin yield of 25.7%. With this latest purchase, Strategy’s total Bitcoin holdings now amount to 636,505 BTC, acquired for a total of $46.95 billion, representing an average purchase price of $73,765 per Bitcoin.

The purchase was primarily financed through the sale of MSTR stock, generating $425.3 million from the disposal of 1.23 million shares. Additionally, Strategy secured $26.5 million, $19 million, and $1 million through the sale of STRF, STRK, and STRF shares, respectively.

Strategy's SEC Filing Snapshot
Source: Strategy’s SEC Filing

Michael Saylor, co-founder of Strategy, hinted at the impending Bitcoin purchase on August 31st. A post on X (formerly Twitter) suggested that Strategy was capitalizing on a price dip to increase its Bitcoin reserves, stating that “Bitcoin is still on Sale.”

This marks the company’s fifth consecutive week of Bitcoin acquisitions. The previous week, Strategy announced the purchase of 3,081 BTC for $356.9 million, resulting in the company holding a significant portion of the total Bitcoin supply. These Bitcoin holdings now represent over 3% of all Bitcoins in circulation.

MSTR Stock Faces Headwinds

Concurrently, MSTR stock has been experiencing a decline. Data from TradingView indicates a drop of over 15% in the stock’s value over the past month. The stock’s downward trend continued last week, ending the week with a negative performance and a closing price of around $334. However, pre-market trading shows a slight rebound, with the stock trading at approximately $338, up over 1%.

MSTR Stock Daily Performance ChartMSTR Stock Daily Performance Chart
Source: TradingView; MSTR Daily Chart

The decrease in MSTR stock value corresponds with the decline in Bitcoin’s price from its recent all-time high (ATH) of $124,000, reached just over two weeks prior. The leading cryptocurrency is currently down more than 12% from that high.

It’s important to note that the stock price decline is occurring after Strategy reversed its previous commitment to refrain from issuing new MSTR shares to fund Bitcoin purchases when the market value relative to net asset value (mNAV) falls below a ratio of 4.0x. Strategy and Saylor have primarily used the sale of MSTR shares to finance their most recent Bitcoin acquisitions.

In positive news for MSTR investors, a class action lawsuit alleging accounting irregularities related to Strategy’s Bitcoin holdings has been dropped. The plaintiffs voluntarily dismissed their claims permanently, preventing them from being refiled.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand.

Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing.

Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.

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