Strategy has acquired an additional 20,356 bitcoins for approximately $1.99 billion, solidifying its position as a leading institutional Bitcoin holder.
Details of the New Purchase
Between February 18 and 23, Strategy purchased 20,356 bitcoins at an average price of $97,514 per BTC. This transaction was disclosed in an 8-K filing with the U.S. Securities and Exchange Commission (SEC).
Company's Financial Strategy
With this latest acquisition, Strategy's total Bitcoin holdings now stand at 499,096 BTC, valued at over $47 billion. The company's Bitcoin assets were acquired at an average price of $66,357 per BTC, amounting to a total investment of approximately $33.1 billion, including fees and expenses.
Risks and Prospects
In its annual report, Strategy highlighted the risks associated with a potential decline in Bitcoin's market value. Its analytics business model did not generate positive cash flow in 2024, potentially impacting tax liabilities. Investors are concerned about the company's premium valuation and reliance on equity- and debt-funded Bitcoin acquisitions.
Despite Bitcoin's volatility, Strategy's market capitalization remains significantly higher than the net value of its Bitcoin holdings, raising questions about its long-term strategies among investors.
