Strategy buys $101M in Bitcoin as MSTR stock surges 7%

Strategy acquired 1,550 Bitcoin for $101 million, bringing its total holdings to 845,256 BTC, the company disclosed Monday.

Michael Saylor, executive chairman of Strategy, confirmed the purchase in a post on X, days after hinting the company could add to its Bitcoin reserve.

The purchase was executed at an average price of $65,332 per Bitcoin, below Strategy's overall cost basis of $75,680. The company funded the acquisition through the sale of 1.4 million MSTR shares, generating $181 million in net proceeds, while also increasing its cash reserves by $100 million to $1 billion.

The acquisition marks Strategy's first Bitcoin purchase since selling a small portion of its holdings last week for the first time since 2022, a move that had raised questions about its accumulation strategy. MSTR shares rose about 7 percent Monday as investors welcomed the renewed buying.

The purchase followed Bitcoin's brief dip below $60,000, with the cryptocurrency recovering to trade near $63,500 as of 13:00 UTC. CryptoQuant data showed Bitcoin's MVRV ratio near 1.1, just above levels that have historically coincided with market bottoms. Jiang Zhuoer, chief executive of BTCTOP, said Strategy's leverage ratio would rise to roughly 10 percent from about 5 percent if Bitcoin fell to $30,000, describing the company's risk as manageable.

Strategy now holds 845,256 BTC acquired for just under $64 billion. The company still has approximately $25.96 billion worth of MSTR common stock available for future issuance, providing substantial capacity for additional Bitcoin purchases if management chooses to continue expanding its reserve.

This article is for informational purposes only and does not constitute investment advice.