Bitcoin News Today: Strategy Buys 3,081 Bitcoin for $356.9M Amid Price Dip

Strategy has continued its aggressive bitcoin acquisition strategy, purchasing an additional 3,081 bitcoin for $356.9 million at an average price of $115,829 per coin, according to a Form 8-K filing with the U.S. Securities and Exchange Commission [1]. This purchase brings the firm’s total bitcoin holdings to 632,457 BTC, solidifying its position as one of the largest institutional holders of the cryptocurrency. At current market prices, the firm’s holdings are valued at over $70 billion, with an average acquisition cost of $73,527 per bitcoin and approximately $23.5 billion in unrealized gains [1].

The latest bitcoin purchases were funded through proceeds from the company’s at-the-market offering programs. Between August 18 and 24, Strategy raised $309.9 million from the sale of 875,301 shares under its Common ATM program, and an additional $20.4 million from 210,100 shares of its 8.00% Series A Perpetual Strike preferred (STRK) [1]. The firm also raised $26.6 million from 237,336 shares of its 10.00% Series A Perpetual Strife preferred (STRF), and $0.1 million from 944 shares of its 10.00% Series A Perpetual Stride preferred (STRD). The STRK and STRF preferreds offer fixed dividend yields of 8.00% and 10.00% respectively, providing the firm with a steady income stream to fund further bitcoin purchases [1].

This capital-raising and acquisition model has drawn attention from analysts, who note that Strategy issues shares when its market value trades at a premium to the bitcoin per share implied by its balance sheet [1]. At a market capitalization of approximately $112 billion against $70 billion in bitcoin holdings, Strategy trades at a roughly 1.6x market-to-NAV multiple, or about a 60% premium to the value of its BTC stash [1]. This premium has allowed the company to fund further purchases while maintaining a relatively modest debt profile.

The timing of the latest purchase appears to coincide with a short-term price dip, as bitcoin traded as low as $112,000 during the same period [2]. Strategy’s average purchase price of $115,829 per bitcoin suggests the firm may have taken advantage of market fluctuations to acquire additional units at relatively attractive prices [2]. The purchase follows a weekend statement from Executive Chairman Michael Saylor, who described “Bitcoin is on sale,” reinforcing the firm’s long-term bullish stance on the asset [1].

Strategy’s approach is distinct from speculative trading, focusing instead on acquiring bitcoin during periods of perceived undervaluation. The firm’s treasury strategy has been characterized by consistent accumulation over time, a model similar to other publicly traded companies that have adopted digital asset allocations [1]. With holdings accounting for nearly 3% of the total 21 million-coin supply, Strategy’s continued accumulation is likely to influence broader institutional sentiment toward bitcoin [1].

As the market continues to evolve, Strategy’s actions reflect a long-term, strategic view of bitcoin as a store of value and a means of portfolio diversification. The firm’s transparency in disclosing these purchases, as required by SEC regulations, is expected to continue shaping investor perception and institutional adoption of digital assets [1].

Source:

[1] The Block, https://www.theblock.co/post/368086/strategy-buys-more-bitcoin

[2] Cointelegraph, https://cointelegraph.com/news/strategy-buys-357-million-bitcoin-btc-price-drops-112k