Strategy Expands Bitcoin Holdings with New Acquisition

• Strategy boosts Bitcoin holdings, acquiring 130 BTC for $11.7 million.
• Bitcoin stash grows to 650,000 BTC, valued around $56 billion.
• U.S. dollar reserve established to support dividends and debt payments.

Strategy, formerly known as MicroStrategy, has made another significant move in the crypto space by acquiring an additional 130 BTC for roughly $11.7 million. This latest purchase brings the company’s total Bitcoin holdings to an impressive 650,000 BTC, valued at approximately $56 billion.

The new acquisitions were made between Nov. 17 and Nov. 30, with an average purchase price of $89,960 per Bitcoin. This further consolidates Strategy’s position as one of the largest Bitcoin holders, having acquired its entire Bitcoin stash at an average price of $74,436 per BTC.

Despite recent market fluctuations, Strategy’s Bitcoin investments still reflect substantial gains, with an estimated paper profit of $7.6 billion at current market prices. According to Michael Saylor, the total cost of these Bitcoin holdings, including fees and expenses, amounts to around $48.4 billion. The sheer size of Strategy’s Bitcoin hoard comprising more than 3% of the total 21 million BTC supply has reinforced its reputation as a crypto heavyweight.

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Funding and Strategy’s Financial Moves

The recent Bitcoin acquisition was funded through proceeds from Strategy’s at-the-market (ATM) sales of its Class A common stock, MSTR. Over the last two weeks, the company sold 8.2 million shares of MSTR, raising approximately $1.48 billion. The company still has $13.37 billion worth of MSTR shares available for issuance under its ATM program, allowing it to continue making strategic moves in the crypto market.

Additionally, Strategy did not sell any of its perpetual preferred stocks during this period, and $30.2 billion remains available for future sales under those programs.

Furthermore, Strategy has established a U.S. dollar reserve of $1.44 billion. This reserve is designed to cover the payment of dividends on its preferred stocks and interest on existing debt, drawing from the MSTR ATM sales.

According to the company’s filing, Strategy intends to maintain this reserve to cover at least twelve months of dividends. It aims to grow the reserve in the future to cover up to 24 months of dividends, depending on market conditions and liquidity needs.

This move signals that Strategy is not only focused on expanding its Bitcoin holdings but also on securing a strong financial foundation to support its operations and growth in the long term.

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