Strategy, a Bitcoin treasury company led by Michael Saylor, continued its purchases despite the decline.
According to an 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC), the company purchased an additional 1,142 BTC between February 2 and 8 for approximately $90 million. The average cost of this purchase was reported as $78,815 per BTC.
With this latest purchase, Strategy’s total Bitcoin holdings have risen to 714,644 BTC. The current market value of the BTC held by the company is approximately $49 billion, while the total cost, including fees, is stated to be $54.3 billion.
This table shows that, at current prices, Strategy carries approximately $5.1 billion in unrealized losses. Total assets represent more than 3.4% of Bitcoin’s 21 million supply.
The new acquisitions were reportedly financed with proceeds from an “off-market” (ATM) sale of Strategy’s Class A shares, ticker symbol MSTR. Prior to the purchase, Michael Saylor had given a traditional hint on social media with a post saying “Orange Dots Matter.”
On the other hand, the company reported a loss in the fourth quarter due to the impact of Bitcoin’s pullback on its balance sheet. Strategy CEO Phong Le argued at the earnings call that unless Bitcoin falls to $8,000 and remains at that level for 5-6 years, there will be no critical risk in paying off convertible debt.
Analysts, however, emphasize that despite using leverage, Strategy has structured its liabilities in a long-term and cautious manner.
*This is not investment advice.
