Strategy spent $1.28 billion on Bitcoin last week, marking its largest purchase in over a month. The firm funded the acquisition by rapidly issuing $377 million of its variable-rate preferred share STRC at its fastest pace since the product’s debut. Strategy now holds approximately 738,750 Bitcoin, which with prices around $68,500 translates to a $50.5 billion stockpile carrying a $5.5 billion unrealized loss.
Strategy expanded its Bitcoin holdings to roughly 738,750 coins after a $1.28 billion purchase last week, as detailed in a press release. This acquisition was fueled partly by issuing $377 million of STRC, its variable rate preferred share, at the fastest rate since the product’s $2.5 billion debut last July.
The total value of Strategy’s Bitcoin stockpile stood at approximately $50.5 billion with the digital asset trading near $68,500. The firm’s average purchase price fell to about $75,800, resulting in an unrealized loss of around $5.5 billion on its $56 billion cumulative investment.
Michael Saylor, the company’s co-founder and Executive Chairman, posted to X, “The second century begins.” The purchase followed Strategy’s 100th Bitcoin acquisition last month since beginning its accumulation strategy in 2020.
Strategy’s common stock price rose 2.8% to $137, according to Yahoo Finance, though shares have declined 58% over the past six months. The STRC product pays a variable monthly dividend, currently at an annualized rate of 11.5%, and its price is intended to be anchored around $100.
Analysts have described the company’s creation of cash reserves last year as prudent, even as products like STRC add monthly costs. Traders on Myriad penciled in a 14% chance that Strategy sells Bitcoin this year, a probability that had been as high as 35% last month.
