Strategy bought approximately $22.1 million worth of Bitcoin during the week of October 12–18, when its shares lost 11.3% of their value, bringing its total reserves to 848.517 BTC.
According to The Block, citing a filing with the U.S. Securities and Exchange Commission (SEC), the company, chaired by Michael Saylor, bought 267 BTC at an average price of $82,900 over the week. Thus, the world’s largest publicly traded Bitcoin treasury company continued buying even as its share price fell.
What is Strategy’s total cost for its Bitcoin?
Following the latest purchase, the company’s Bitcoin holdings reached 848.517 BTC. The total cost of this accumulation was approximately $64 billion, with an average cost of $75,446 per Bitcoin. The amount held by Strategy represents more than 4% of Bitcoin’s maximum supply of 21 million.
MSTR shares fell 11.3% last week, closing Friday at $136.83. Bitcoin’s loss over the same period was 2.6%.
Where did the money for the weekly purchase come from?
Strategy covered approximately $22 million of the purchase with proceeds from the sale of 140.872 MSTR shares. The remaining approximately $100,000 came from the company’s cash balance. Approximately $18.79 billion in capacity remained under the program that allows it to sell shares on the market.
During the same period, the company used approximately $193.1 million to repurchase STRC preferred shares and $45.5 million for preferred stock dividends. The board also raised the repurchase program’s limit for its digital credit securities from $2 billion to $3 billion.
As of October 18, Strategy’s separately tracked USD Cash balance was $447.3 million, while its USD Reserve balance was $4.83 billion.
Not investment advice.