Strategy Adds Another $742M in Bitcoin as Holdings Near Half a Million BTC
Bitcoin treasury giant Strategy (formerly MicroStrategy) has reinforced its position as the largest corporate Bitcoin holder, acquiring an additional 7,633 BTC between February 3 and February 9 for $742.2 million. The latest purchase, disclosed in an SEC filing on Monday, brings the company's total Bitcoin stash to 478,740 BTC, worth over $46 billion at current market prices.
Aggressive Accumulation Continues
Co-founder and executive chairman Michael Saylor revealed that Strategy’s average purchase price now stands at $65,033 per BTC, with a total spend of $31.1 billion, including fees and expenses. With this latest addition, the firm now controls over 2.2% of Bitcoin’s fixed 21 million supply, reinforcing its dominance in institutional Bitcoin adoption.
The purchase follows Strategy’s recent equity sales, including the sale of 516,413 shares of its class A common stock for $179 million and 7.3 million shares of its Series A Perpetual Strike Preferred Stock for $563.4 million. The firm still has $4.17 billion worth of shares available for sale under its "21/21 plan," which aims to raise $42 billion through equity and debt financing for further Bitcoin acquisitions.
Saylor Hints at More Bitcoin Buys
Saylor, a vocal advocate of Bitcoin, signaled potential future purchases in a cryptic Sunday post showing Strategy’s Bitcoin tracker, writing, “Death to the blue lines. Long live the green dots.” The company, which recently rebranded to Strategy and adopted a Bitcoin-inspired logo, has spent approximately $20 billion on Bitcoin purchases in recent months—a pace that briefly paused amid its earnings release last week.
Challenges Ahead: Losses, Accounting Changes & Tax Uncertainty
Despite its aggressive Bitcoin strategy, Strategy reported a $670.8 million net loss for Q4 2024, driven by a 693% surge in operational expenses, which hit $1.1 billion. Impairment losses on its Bitcoin holdings alone accounted for over $1 billion, highlighting the financial volatility tied to its BTC-heavy balance sheet.
However, a shift to the Financial Accounting Standards Board’s (FASB) new fair-value accounting rules in 2025 could boost Strategy’s balance sheet by $12.75 billion, as firms will now be able to mark their Bitcoin holdings to market prices. Still, concerns remain about how new tax regulations, including provisions from the Inflation Reduction Act, will impact Strategy’s Bitcoin holdings.
Valuation Premium & Investor Skepticism
At a staggering $82.3 billion market cap, Strategy continues to trade at a significant premium to its Bitcoin net asset value (NAV), sparking debate among investors about the sustainability of its equity and debt-funded Bitcoin strategy. While some see Strategy as the ultimate Bitcoin proxy stock, others remain cautious about the risks of its aggressive accumulation plan.
With billions still available for future acquisitions and Saylor remaining bullish, all eyes are on what’s next for Strategy—and Bitcoin.