Strategy Spends $1.2 Billion on Bitcoin, Its Biggest BTC Buy Since July – Decrypt

Strategy unveiled its largest Bitcoin purchase in over five months on Monday, scooping up around 13,600 Bitcoin in the past week, according to a press release. That’s more than $1.2 billion worth at the current price of Bitcoin.

The Tysons Corner, Virginia-based firm now owns 687,400 Bitcoin, a stockpile worth over $62.8 billion, as the asset’s price hovered $91,415, according to CoinGecko. The cryptocurrency changed hands around $93,000 when U.S. markets opened a week ago.

The Bitcoin-buying firm financed its latest purchase primarily through common stock, issuing 6.8 million shares for $1.1 billion. The company meanwhile issued $119 million worth of its STRC preferred stock, a high-yield product that co-founder and Executive Chairman Michael Saylor has billed as an alternative to traditional savings accounts for risk-averse inventors, including retirees.

Plowing more than $1.2 billion into Bitcoin, the last time Strategy purchased as much BTC over a weekly period was in late July. At the time, the company said that it had purchased a whopping 21,000 Bitcoin, when it closed its $2.5 billion public offering of STRC.

Strategy shares opened around $157, a 5.7% dip from Friday’s closing price, according to Yahoo Finance. The dip came as fears towards the Federal Reserve’s independence flared on Wall Street, after Chair Jerome Powell warned of a Trump-led criminal probe on Sunday. However, MSTR has since ticked above $159 per share, showing a roughly 1% rise on the day.

With Strategy’s latest purchase, the company now owns Bitcoin at an average purchase price of $75,300 per Bitcoin. So far, the largest corporate holder of Bitcoin has spent $51.8 billion on the asset, according to Bitcoin Treasuries.

Last week, Strategy investors breathed a sigh of relief after MSCI, the financial firm providing a range of stock market indices, signaled that it wouldn’t exclude companies that are heavily expanded to cryptocurrencies from its product.

Although JPMorgan analysts warned in November that Strategy’s exclusion from MSCI’s products could stoke billions of dollars in outflows for MSTR, MSCI deferred the decision, preserving index eligibility for digital-asset treasury and infrastructure firms through its February review.

In a post on X, Strategy thanked the Bitcoin community and its investors, describing MSCI’s decision as “a strong outcome for neutral indexing and economic reality.”

Strategy’s mNAV, or multiple-to-net asset value, stood at 1.03 on Monday, according to the company’s website. After wavering last year, some analysts foresee the metric that’s central to Strategy’s approach to buying Bitcoin recovering to historic levels.

However, some onlookers felt MSCI’s latest move wasn’t purely beneficial to companies like Strategy, considering that MSCI said it would “will not implement increases” to the number of shares that guides the company’s weighting within the index.

When Strategy issues common shares to purchase Bitcoin, that means MSCI wouldn’t automatically purchase the company’s stock. MSCI added in its decision that the financial institution will assess eligibility of “non-operating companies” more broadly.

Some Bitcoin advocates—including Max Keiser, an American-Salvadoran broadcaster and filmmaker—dismissed the notion that MSCI’s decision not to account for increases in Strategy’s share count will affect the business’s prospects last week.

“The cap by MSCI to exclude new MSTR shares in its weighting is a nothing-burger,” he said on X. “Forced buying is still triggered when Bitcoin-heavy MSTR stock price increases.”