Strategy Boosts Bitcoin Holdings to 636,505 BTC with $449.3M Purchase, Funded by MSTR Share Sales

Strategy has purchased 4,048 BTC for $449.3M, increasing its total holdings to 636,505 BTC. The company funded the purchase by selling 1.23M MSTR shares and other assets, despite a decline in Bitcoin and MSTR stock. Strategy's legal dismissal of accounting claims removes a key overhang and reinforces its role as a major institutional Bitcoin buyer.

MicroStrategy (Nasdaq: MSTR), led by CEO Michael Saylor, has purchased an additional 4,048 BTC for approximately $449.3 million, increasing its total holdings to 636,505 BTC. The acquisition, made between Aug 26 and Sept 1, was funded by the issuance and sale of the company’s Class A common stock, MSTR, and perpetual preferred stocks [2].

Despite a decline in Bitcoin and MSTR stock prices, the company has continued its aggressive Bitcoin acquisition strategy. The latest purchase was made at an average price of $110,981 per bitcoin, bringing the company's total Bitcoin holdings to approximately $70 billion [2].

The legal dismissal of the class-action lawsuit against the company, which alleged misleading claims about its Bitcoin strategy, has removed a significant overhang. The plaintiffs voluntarily dismissed their claims with prejudice, preventing them from refiling the same suit [1]. This development allows MicroStrategy to focus on its Bitcoin strategy without the distraction of ongoing litigation.

The company's commitment to Bitcoin as a corporate treasury has inspired other firms to adopt similar models, collectively. As of now, there are 163 public companies that have adopted some form of Bitcoin acquisition model [2].

MicroStrategy's latest acquisition and the dismissal of the lawsuit reinforce its role as a major institutional Bitcoin buyer. However, investors remain closely scrutinizing the company's accounting practices and disclosures, particularly in light of the new Financial Accounting Standards Board (FASB) accounting rules that require companies to record digital assets at fair value each quarter and recognize both gains and losses in earnings [2].

References:
[1] https://www.thestreet.com/crypto/markets/massive-relief-for-microstrategy-as-troubling-lawsuit-ends
[2] https://www.theblock.co/post/368902/bitcoin-is-still-on-sale-michael-saylor-strategy-buys-more-btc