Strategy buys $370 million in Bitcoin in first purchase since June

Strategy, a business intelligence company, bought 4,603 Bitcoin (BTC) for $370 million, marking its first corporate Bitcoin purchase in two months. The company now holds 845,050 BTC, acquired for a total of $63.3 billion at an average price of $75,413 per Bitcoin.

How the purchase was funded

The Bitcoin purchase was funded by the net proceeds from selling 602 million shares of its common stock (MSTR). Of the proceeds, $30 million was used to increase its cash reserves, and $151.8 million was allocated to repurchase its perpetual preferred stock, STRC.

Market reaction and context

MSTR stock was up less than 1% in pre-market trading on Monday, following a 7% drop on Friday. Strategy’s executive chairman, Michael Saylor, hinted at the purchase on Sunday with a tweet saying “We’re Back,” a pattern he has used before major Bitcoin treasury moves.

STRC, a key funding tool for Strategy’s Bitcoin purchases, traded at $97.33 in pre-market activity, a 2.67% discount to its $100 par value. Trading below par may limit the company’s ability to raise funds through STRC sales.

This purchase follows Strategy’s last Bitcoin acquisition in mid-June, when it bought 1,587 BTC for roughly $100 million.

Key numbers

• 4,603 Bitcoin purchased for $370 million
• Average purchase price: $80,318 per Bitcoin
• Total Bitcoin holdings: 845,050 BTC
• Total spent on Bitcoin: $63.3 billion
• Average price per Bitcoin: $75,413
• $30 million added to cash reserves
• $151.8 million used to repurchase STRC stock

Why this matters

Strategy is the largest corporate holder of Bitcoin. Its purchases and funding methods, such as stock sales and STRC repurchases, show how the company manages its Bitcoin treasury strategy.

Sources

• Cointelegraph