Bitcoin Juggernaut Strategy Purchased $90 Million Worth Of BTC Last Week As Total Holdings Remain Underwater ⋆ ZyCrypto

Software firm turned Bitcoin treasury company Strategy added another tranche of BTC last week, expanding its holdings even as the digital asset’s price fell hard in recent weeks and finally crashed to nearly $60,000.

Strategy Now Owns 3.4% Of Total Bitcoin Supply

Led by Executive Chairman Michael Saylor, the Tysons Corner, Virginia-based firm spent $90 million on Bitcoin between Feb. 2 and Feb. 8, while adding roughly 1,142 Bitcoin to its stockpile at an average price of $78,815 each, according to a Monday regulatory filing. 

The largest corporate holder of Bitcoin now owns 714,644 Bitcoin, a sum worth $62.7 billion, with the premier crypto recently changing hands around $69,292, according to CoinGecko. The asset’s price dipped below Strategy’s average purchase price of $76,000 last week.

The total haul has been acquired since 2020 for approximately $54 billion, at an average price of $76,056 per coin. For perspective, Strategy’s holdings are equivalent to around 3.4% of Bitcoin’s entire 21 million supply, but imply roughly $4.8 billion of unrealized losses following the latest crypto market rout.

Strategy’s latest purchase was funded primarily through the issuance of its MSTR class A common stock. The company sold roughly 616,715 MSTR shares for roughly $89.5 million, and issued no preferred shares during the week. 

Saylor, known for his buy-and-never-sell attitude toward Bitcoin, hinted at Strategy’s Bitcoin purchase, writing on X: “Orange Dots Matter.” 

The acquisition follows a buy earlier this month, when Strategy scooped up 855 BTC for $75 million.

Speaking during Strategy’s latest earnings call, Strategy President and CEO Phong Le assured investors that the company’s balance sheet remains resilient despite Bitcoin’s drawdown. Lee indicated that the apex crypto would need to plunge to $8,000 and stay at that level for five to six years before it would seriously jeopardize the company’s ability to meet its convertible debt obligations. 

“In the extreme downside, if we were to have a 90% decline in Bitcoin price and the price was $8,000, that it the point at which out Bitcoin reserve equals our net debt, and will not be able to then pay off our convertibles using our Bitcoin reserve, and we’d either look at restructuring, issuing additional equity, issuingh additional debt,” Le postulated.