Michael Saylor’s Strategy, previously MicroStrategy, has made another weekly Bitcoin purchase despite concerns that it may need to sell some of its BTC holdings in a prolonged bear market. This latest purchase comes amid a rebound in the Bitcoin price, while the MSTR stock is also up in pre-market trading.
Strategy Acquires 10,624 BTC for $962.7 Million
In a press release, the company announced that it acquired 10,624 BTC for $962.7 million at an average price of $90,615 per Bitcoin and has achieved a BTC yield of 24.7% year-to-date (YTD). It now holds 660,624 BTC, which it acquired for $49.35 billion at an average price of $74,696 per Bitcoin.
Strategy’s SEC filing shows that the company made this latest purchase with net proceeds from the sales of its MSTR and STRD stock. It raised $928.1 million and $34.9 million from these stocks, respectively.
Source: Strategy SEC FilingAs CoinGape reported, Saylor hinted at the BTC purchase in his conventional X post. He posted the company’s Bitcoin portfolio tracker with the caption, “₿ack to Orange Dots?”
Strategy continues to accumulate more BTC despite concerns that it may sell at some point, considering the current market conditions. The company’s CEO, Phong Le, had previously stated that they might need to sell to fund dividend payments if the mNAV drops below 1x.
However, the company has since set up a $1.44 billion USD reserve, which Phong Le clarified means that they do not need to sell for the next three years. The USD reserve is expected to cover around 21 months of dividend and interest payments, with plans to further increase the reserves over time.
Meanwhile, Strategy’s announcement of this latest purchase comes amid a rebound in the Bitcoin price. The flagship crypto has again broken above the psychological $90,000 level.
The MSTR stock has also rebounded alongside Bitcoin. Yahoo Finance data show the stock has climbed above $180 and is trading around $182, up almost 2% from last week’s close of $178.
Source: Yahoo Finance; MSTR Daily ChartSource: https://coingape.com/michael-saylors-strategy-buys-more-bitcoin-amid-sell-off-concerns/
