On Monday, Strategy disclosed its purchase of 4,871 BTC for $330 million last week, utilizing proceeds primarily from its flagship preferred share to bolster its Bitcoin holdings. The Virginia-based firm now possesses approximately 767,000 Bitcoin, valued at roughly $53.3 billion. These purchases were executed at a price of $67,700 per Bitcoin, below Monday’s market rate.
The acquisition was largely financed by Strategy’s STRC variable-rate preferred share, with the company issuing $227 million worth compared to $72 million in common shares last week. After not disclosing any transactions the preceding week, which ended a 13-week streak of buying 90,831 BTC, co-founder Michael Saylor indicated readiness for renewed purchases via a Sunday tweet: “Back to Work.”
The company’s previous purchasing spree was supported by significant STRC proceeds, with over $1.5 billion raised last month alone. Strategy maintains issuing more STRC when its price exceeds the $100 par value, as observed four days in the prior week.
In a financial update, Strategy reported a $14.46 billion drop in Bitcoin holdings’ value for this year’s first quarter, surpassing the previous fourth-quarter loss of $12.4 billion. As of Monday, the firm’s Bitcoin investments were valued $4.9 billion below their purchase price since 2020, averaging $75,600 per Bitcoin.
Ahead of Monday’s market opening, Strategy shares were expected to decline by 2.4% to around $199, as reported by Yahoo Finance. Despite recent buying efforts, the stock has dropped 21% this year and 65% over six months from a peak of $359.
Meanwhile, Bitcoin prices rose to $69,480, marking a 4.1% daily increase according to CoinGecko data. The digital currency remains 44% below its all-time high of $126,000 last year. On Myriad, a market owned by Decrypt’s parent company Dastan, traders assigned a 13% probability that Strategy will sell Bitcoin this year, down from 17% predicted a month ago.