Strategy (MSTR) Stock: Plunge as Company Buys Another 10,645 BTC

TLDR:

• Strategy Inc. buys 10,645 BTC for $980M, raising Bitcoin holdings to $60B.
• Strategy Inc. continues Bitcoin buying spree, adding 10,645 BTC last week.
• Strategy Inc. funds Bitcoin purchase through stock sales amid market volatility.
• Strategy Inc. spends $980M on Bitcoin, defying market uncertainty and volatility.
• Despite market dips, Strategy Inc. buys more Bitcoin, now holding 671,268 BTC.

Strategy Inc. (MSTR) saw its stock drop by 8.14%, closing at $162.08, following a significant Bitcoin purchase.

MicroStrategy Incorporated, MSTR

The company, led by Michael Saylor, has consistently bought large amounts of Bitcoin, and last week, it added 10,645 BTC to its holdings. This move comes as Bitcoin remains around the $90,000 mark, and the market waits for key economic data that could affect price movements.

Strategy’s Bitcoin Purchase and Market Impact

Strategy continues its aggressive Bitcoin strategy. Last week, the company acquired 10,645 BTC for approximately $980.3 million, paying an average of $92,098 per coin. This purchase adds to Strategy’s growing Bitcoin portfolio, which now stands at 671,268 BTC, valued at over $60 billion.

The company has spent nearly $50.3 billion on Bitcoin since it started accumulating the cryptocurrency. At the current market price of Bitcoin, this has left the company with an unrealized profit exceeding $9.7 billion. Despite the significant market volatility, Strategy remains committed to its Bitcoin-focused strategy.

Strategic Bitcoin Accumulation Amid Market Volatility

The timing of Strategy’s latest purchase coincides with a period of market consolidation, where Bitcoin hovers near $90,000. There is a sense of cautious optimism that the market may recover. With key economic data set for release in the coming weeks, such as the Consumer Price Index (CPI) and nonfarm payrolls, analysts hope that these reports could provide clarity on the market’s direction.

While Bitcoin’s price has seen some downward pressure recently, Strategy remains undeterred. The company’s strategy of continuous Bitcoin accumulation appears unaffected by the broader market trends. As one of the largest corporate holders of Bitcoin, Strategy’s decisions carry significant weight in the cryptocurrency space.

Bitcoin Buy Funded Through Stock Sales

Strategy funded its latest Bitcoin purchase through its ATM program, primarily by selling common MSTR stock. Additional funds came from the sale of STRF, STRD, and STRK preferred shares, according to a recent SEC filing. The company has continued to sell equity in its own stock to finance its Bitcoin buying spree, despite concerns about its business model’s long-term sustainability.

This marks the second consecutive week that Strategy has made a large-scale Bitcoin purchase. The company acquired 10,624 BTC for approximately $962.7 million just the week prior. The latest purchase highlights the company’s ongoing commitment to expanding its Bitcoin holdings, regardless of market conditions or the broader economic landscape.

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