Strategy, previously MicroStrategy, has made another weekly Bitcoin purchase, further solidifying its dominance as the largest public BTC treasury company. This comes amid a decline in the BTC price and MSTR stock, with both assets known to share a strong positive correlation.
Strategy Buys 4,048 BTC For $444 Million
In a press release, the company announced that it had acquired 4,048 BTC for $449.3 million at an average price of $110,981 per Bitcoin, achieving a BTC yield of 25.7% year-to-date (YTD). It now holds 636,505 BTC, which it acquired for $46.95 billion at an average price of $73,765 per bitcoin.
Strategy again mainly sold MSTR shares to fund this purchase, raising $425.3 million from the sale of 1.23 million shares. Meanwhile, the company raised $26.5 million, $19 million, and $1 million from the sale of STRF, STRK, and STRF shares, respectively.
Source: Strategy’s SEC FilingNotably, Strategy’s co-founder, Michael Saylor, had teased another Bitcoin purchase on August 31. In an X post, he stated that BTC was still on sale, suggesting they had taken advantage of the dip to add to their treasury.
This is the company’s fifth consecutive weekly purchase. Last week, Strategy announced that it had acquired 3,081 BTC for $356.9 million, a move which saw the company’s BTC holdings account for over 3% of Bitcoin’s total supply.
The MSTR Stock Is On A Decline
Meanwhile, these purchases have come amid a decline in the MSTR stock. TradingView data shows that the stock is down over 15% in the past month. The stock continued its downtrend last week and closed the week in the red, trading at around $334. However, the stock is up over 1% in pre-market trading, trading at around $338.
The decline in the Strategy stock coincides with the drop in the Bitcoin price from its all-time high (ATH) of $124,000, which it reached just over two weeks ago. The flagship crypto is currently down over 12% from its current ATH.
It is worth mentioning that the decline in the stock price comes amid the company’s decision to renege on its promise not to issue MSTR shares to buy BTC when the mNAV is below 4.0x. Strategy and Saylor have funded their last two purchases mainly with the sale of MSTR shares.
Amid the decline in the MSTR stock, a positive development is that Michael Saylor and his company are no longer facing a class action suit over alleged accounting errors in their Bitcoin holdings. The plaintiffs voluntarily dismissed their claims with prejudice, meaning they cannot refile the same claim.
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Source: https://coingape.com/michael-saylors-strategy-buys-the-dip-with-bitcoin-purchase/
