Strategy announced a $2 billion bitcoin purchase, increasing its stash to 499,096 BTC, just after completing a bonds offering of the same amount.
Deal Details
Co-founder and former CEO Michael Saylor announced the acquisition of 20,356 BTC at an average price of $97,514. With total bitcoin investments at $33.1 billion and an average acquisition price of $66,357, Strategy is the largest corporate bitcoin holder.
Financial Outcomes
Strategy raised $2 billion via convertible notes with a 0% coupon and a 35% premium. The company's bitcoin holdings are now valued at $47.4 billion, resulting in a $14 billion paper gain.
Stock and BTC Price Decline
Despite the bitcoin purchase, the company's stock has decreased by more than 12% over the last five days. BTC has also struggled, falling below $96,000 and nearing the $95,000 mark. This may have contributed to the decline in Strategy's stock price.
Strategy's latest moves demonstrate its confidence in bitcoin's future, despite current market volatility and price decline.
