Strategy Drops Nearly $1 Billion on Bitcoin, Marking Largest BTC Buy in Months

In brief

• Strategy unveiled its largest Bitcoin purchase in over 100 days.
• The company’s stock price was little changed.
• Some analysts lowered price targets for Strategy last week.

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Strategy revealed its largest Bitcoin purchase over 100 days on Monday, after spending nearly $1 billion on the asset last week, according to a press release.

The Tysons Corner, Virginia-based firm spent $963 million on 10,624 BTC, with proceeds that largely came from issuing common stock. The company now owns roughly 660,600 Bitcoin, which was recently worth around $60 billion, based on current prices.

Strategy’s latest acquisition was significantly larger than most purchases it has disclosed in recent months. The size of Strategy’s latest purchase is equal to the entirety of its Bitcoin-buying activity since mid-September, when Bitcoin changed hands around $115,000, for example.

Strategy shares were little changed at $180 on Monday, according to Yahoo Finance. Although Strategy’s stock price has halved over the past six months, shares have advanced 7.5% in the past five trading days as Bitcoin’s price hovered near the $90,000 mark.

In a recent note, Cantor Fitzgerald analysts pointed to perceived shifts in Strategy’s approach to buying Bitcoin as a source of fear among investors, which they described as unfounded. Among them was the notion that Strategy wasn’t buying the recent dip in Bitcoin prices.

Still, Cantor analysts were among those that lowered their price target for Strategy last week, highlighting the company’s potential exclusion from MSCI indices as bearish. Strategy has recently engaged the index provider about its upcoming decision, per Reuters.

The negative sentiment regarding MSCI was echoed by TD Cowen analysts. However, they pointed to Strategy’s recent creation of a $1.4 billion “cash reserve” as prudent, noting that it gives Strategy ample room to make more dividend payments.

The last time Strategy bought this much Bitcoin, the company had just announced the $2.5 billion closing of STRC, one of several preferred shares offering dividends that the Bitcoin-buying firm had debuted this year.

At the time, it was the largest crypto-linked equity raise of the year. However, Monday’s release appeared relatively routine. In addition to issuing common stock, the company offered $44 million worth of STRD, which features a 10% annual, non-cumulative cash dividend.

Strategy’s latest move contrasts with some firms that have borrowed elements of its Bitcoin-buying playbook, including Metaplanet. The largest corporate holder of Bitcoin in Japan is preparing to offer its own preferred shares, but it hasn’t unveiled a purchase since October.

Meanwhile, Twenty One Capital, the Bitcoin-buying firm backed by Tether and Softbank, is preparing to trade on the New York Stock Exchange this week under the ticker symbol XXI.

Jack Mallers, the company’s co-founder and CEO, signaled on X that the company’s Bitcoin was on the move as a result, with 43,500 Bitcoin being transferred out of escrow. On Monday, those holdings were recently worth around $3.9 billion.