Strategy (MSTR) Adds 1,142 Bitcoin For $90 Million

"Strategy said it acquired the coins between Feb. 2 and Feb. 8 at an average price of $78,815 per bitcoin. The latest buy lifts Strategy's total holdings to 714,644 BTC. The stack is valued near $49 billion at current market prices. Strategy has spent roughly $54.4 billion to build the position, including fees and expenses. The average purchase price across its holdings stands at $76,056 per bitcoin."

"The company funded the acquisition through its ongoing at-the-market equity program. The company sold 616,715 shares of its Class A common stock, MSTR, for about $89.5 million last week. As of Feb. 8, Strategy still had nearly $8 billion in share issuance capacity available under the program. Michael Saylor, the company's co-founder and executive chairman, signaled the purchase ahead of the filing with his usual Sunday post pointing to Strategy's bitcoin tracker and the phrase "Orange Dots Matter.""

"The buy comes after Strategy reported a steep quarterly loss as the bitcoin pullback erased tens of billions of dollars in value from its balance sheet. The company posted one of the largest quarterly losses ever recorded by a U.S. public firm. During the earnings call, CEO Phong Le addressed concerns around leverage and debt servicing. He said bitcoin would need to fall to $8,000 and remain there for five to six years before Strategy faced serious difficulty covering its convertible obligations."

Strategy acquired 1,142 bitcoin between Feb. 2 and Feb. 8 at an average price of $78,815, spending about $90 million. Total holdings now total 714,644 BTC, valued near $49 billion, with an aggregate cost of roughly $54.4 billion and an average purchase price of $76,056 per bitcoin. The purchase was funded through an at-the-market equity program that sold 616,715 MSTR shares for about $89.5 million, leaving nearly $8 billion of issuance capacity as of Feb. 8. The buy follows a steep quarterly loss; management said bitcoin would need to fall to $8,000 and remain there five to six years before convertible obligations become hard to cover.

Read at Bitcoin Magazine