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The company Strategy, the largest publicly traded corporate holder of the leading cryptocurrency, purchased 1,031 bitcoins from March 16 to March 22. The total transaction amount was $76 million, with an average purchase price of $74,326 per bitcoin. The funding for this latest acquisition was entirely sourced from the issuance and sale of the company’s common stock (MSTR). Last week, Strategy sold 509,111 MSTR for approximately $76.5 million. The previous rounds of investments were financed through proceeds from the sale of preferred shares (STRC) yielding 11% annually. The company’s management previously announced that the majority of bitcoin purchases this year would be funded by STRC proceeds.
Currently, Strategy holds 762,099 BTC, which represents over 3% of the total supply of the leading cryptocurrency. Since the beginning of the year, this marks at least the sixth acquisition of coins, with more than 64,000 bitcoins acquired since January. The last transaction involving 22,337 BTC occurred in mid-March.
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The total expenditure by the company on bitcoin acquisitions since 2020 has reached $57.38 billion, with an average purchase price of $75,294 per coin. According to data from CoinGecko, the loss on Strategy’s bitcoin reserves amounts to $3 billion. The value of the bitcoin holdings has depreciated by more than 5% since the portfolio’s inception.
Strategy has nearly caught up to the world’s largest investment firm, BlackRock, in terms of accumulated bitcoins. The IBIT fund, which is linked to the bitcoin price, currently manages 784,062 coins.
Previously, Strategy’s CEO Michael Saylor stated that the recovery of the bitcoin market could take between two to seven years. He claims that this is not a disaster for long-term investors. He assured that his company would withstand a decline in the leading cryptocurrency down to $8,000 and would not sell assets above that price.
