Executive Chairman Michael Saylor said the company was buying “a lot” of Bitcoin in an interview with CNBC on Friday.
- MSTR’s latest purchase brings its total Bitcoin holdings to 649,870.
- The filing shows that most of Strategy’s latest purchases were financed by a preferred euro-denominated offer.
- Debate continues over the company’s “BTC yield” metric and how it should be interpreted by investors.
Strategy (MSTR) announced Monday that it purchased more than 8,000 Bitcoin (BTC) over the past week as the cryptocurrency’s price fell below $100,000.
The purchase represents the company’s largest Bitcoin acquisition since July, when it purchased 21,021 BTC. In September and October, Strategy primarily executed smaller, triple-digit Bitcoin purchases.
MSTR stock fell as much as 2.8% in morning trading, but retail sentiment on Stocktwits has moved into “bullish” territory amid “high” levels of chatter over the past day. Meanwhile, the price of Bitcoin fell 0.9% over the past 24 hours, trading at around $93,600. Retail sentiment around cryptocurrency trend peak is in “bearish” territory, even though discussions were at “high” levels.
The strategy buys “a lot” of BTC
The company said it acquired 8,178 Bitcoins for $835.6 million, bringing its total Bitcoin holding to 649,870. Strategy’s most recent purchase was made at an average price of $102,171 per Bitcoin.
Its filing with the Securities and Exchange Commission (SEC) showed that the majority of purchases were made with proceeds from its euro-denominated preferred offering closed last week.
Executive Chairman Michael Saylor said the company was buying “a lot” of Bitcoin in an interview with CNBC on Friday. “We’re buying. In fact, we’re buying a lot,” he said. “We actually accelerated our purchases.”
MSTR Stock Price Struggles
Saylor also compared Strategy’s gains to those of Nvidia (NVDA), saying the two stocks have performed similarly over the past five years. While Nvidia stock has gained 1,315%, Strategy’s stock is up 951% since November 2020.
However, over the past 12 months, MSTR’s stock is down more than 43%, while NVDA’s is up about 33%. Most of MSTR’s loss occurred over the past month, as Bitcoin’s price fell from its all-time high of over $126,000 in October to levels below $100,000. Investors are also concerned that the company’s mNAV metrics, which value its Bitcoin holdings relative to its market capitalization, could fall below 1.
Cliff Asness, co-founder of AQR Capital Management, told investors in an article on This metric is intended to reflect how issuing stock and debt to acquire additional Bitcoin increases each stock’s exposure to the company’s holdings.
However, Saylor claimed that even if the price of Bitcoin fell by 80%, the company’s digital asset treasury strategy would remain intact.
Read also: Bitcoin Price Struggles as Crypto Liquidations Surpass $500 Million – Analyst Signals Retail Pressure
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