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The value of Bitcoin reserves held by the largest public corporate holder of BTC, Strategy, has decreased by $9.2 billion amid a downturn in the cryptocurrency market, according to data from DropsTab.
Over the past three months, the value of the company’s Bitcoin portfolio has fallen by more than 27%. Cumulatively, the decline over the entire investment period is estimated at approximately 17%. In just the last 24 hours, the company has lost nearly 4% of its cryptocurrency reserves. Currently, Strategy’s reserves are valued at $45.3 billion, while around $54.6 billion has been allocated for Bitcoin purchases since 2020.
On February 22, the company acquired an additional 592 BTC for $39.8 million at an average price of $67,286. The total reserve now stands at 717,722 BTC, which is over 3% of all coins in circulation. Since the beginning of the year, Strategy has made seven Bitcoin purchases. In the first two months, excluding the latest transaction, the company acquired 43,354 BTC.
The primary source of funding for these purchases continues to be proceeds from stock offerings. In mid-February, the company’s CEO Phong Le announced that future BTC acquisitions would be financed through proceeds from the issuance of Stretch (STRC) preferred shares, which yield 11%. After the price dropped to $93 in early February, these securities have recovered and are currently trading near their par value of $100.
The decline in reserve value is occurring against the backdrop of a falling cryptocurrency market: over the last three months, Bitcoin has lost more than 28%, and since the end of January, it has dropped by about 29%, reaching $63,169. Meanwhile, Strategy’s chairman Michael Saylor has repeatedly stated that the company does not intend to sell its Bitcoin holdings and believes it can withstand a drop in the price of the leading cryptocurrency to $8,000.
