The strategy added 397 Bitcoins, continuing its strategy of relentless accumulation despite market volatility.
The company said it sold $69.5 million across various share classes to fund the purchase of $45.6 million at an average price of $114,771 per BTC.
Summary
- Strategy acquired 397 Bitcoins between October 27 and November 2, bringing its total holding to 641,205 BTC.
- The $45.6 million purchase was financed with $69.5 million raised through the sale of shares across several share classes.
- The company remains the largest corporate Bitcoin holder, far ahead of Marathon Digital’s 53,250 BTC, despite the stock’s recent decline and pressure on valuations.
According to a Form 8-K filed on November 3 with the United States Securities and Exchange Commission, Strategy Inc. revealed that it acquired 397 Bitcoin (BTC) between October 27 and November 2, bringing its total holdings to 641,205 BTC.
The Tysons Corner, Va.-based company said the purchases were funded with proceeds from a series of at-the-market stock programs that generated $69.5 million across several classes of preferred and common stock.
About $54.4 million came from the sale of MSTR stock, while smaller amounts came from the company’s STRF, STRK and STRD preferred stock issuances.
The strategy deepens its bet on “digital gold”‘
The latest filing shows that Strategy’s 641,205 Bitcoins were acquired for approximately $47.49 billion, at an average cost of $74,057 per coin. This figure reflects more than five years of steady accumulation, starting with the company’s first purchase of Bitcoin in August 2020.
The acquisition further solidifies Strategy’s undisputed position as the dominant Bitcoin holding company. Its treasury of 641,205 BTC now eclipses that of its closest competitor, Marathon Digital Holdings, which holds 53,250 BTC. This means that Strategy’s reserves are more than twelve times larger, a gap that continues to widen with each weekly purchase.
The company is not the only one to be convinced: other players in the sector are also strengthening their balance sheets. Following its own substantial third-quarter earnings, Coinbase CEO Brian Armstrong announced that the exchange had increased its Bitcoin holdings by 2,772 BTC and intended to “continue to buy more”, placing it ninth on the list of corporate holders.
Notably, Strategy’s latest purchase follows a major third-quarter earnings report in which the company reported net income of $2.8 billion, or $8.42 per share. This profit was mainly due to mark-to-market gains on its existing bitcoin holdings, as the price appreciated throughout the quarter.
However, a stark divergence has emerged between the company’s reported earnings and its stock performance. As the value of its Bitcoin cash rose, MSTR shares fell about 14% during the third quarter, with that decline accelerating in October as the stock’s premium to its net asset value compressed sharply.
