Bitcoin traded at around $93,000 after Strategy revealed it purchased 8,178 BTC valued at approximately $835.6 million during the previous week. It was its largest purchase since early summer.
SEC filing A Michael Saylor article on X shows that the average bitcoin price was $102,171. The company currently holds 649.870 BTC that were acquired for approximately $48.37billion at an average cost $74,433. Strategy reported that its bitcoin yield had reached 27,8% for the year.
In premarket trading, Strategy’s ($MSTR), a stock owned by Strategy Group Inc. (the company behind the Bitcoin announcement), was down 2.2% to $195.86.
The majority of the acquisition cost was covered by preferred stock. The company has raised approximately $715,000,000 through the new STRE euro-denominated series.”Steam”The company has expanded its offerings of high-yield investments to European investors.
The STRC also sold for another 131.4 millions dollars.”Stretch”According to the Monday filing, ), preferred shares.
This move is a welcome return to large-scale accumulation By Strategy. Strategy made smaller, incremental bitcoin purchases in recent months amid the sharp decline of its stock.
MSTR shares have fallen roughly The firm has been unable to sell common stock in the last four months without diluting its existing shareholders.
With Monday’s share price of $199, Strategy’s enterprise values are now only marginally above its Bitcoin reserves.
Bitcoin’s price was $94,500 in the morning of Monday. This is not much different than Friday. Michael Saylor has made a new purchase that suggests he’s doubling down on bitcoin as a treasury despite a recent decline in the market.
Strategy’s ‘zoom out’ fundamentals
Bitcoins have dropped by nearly 30% from its early-October highsThe assumption that greater institutional involvement and clarity in regulation would stabilise prices is challenged.
The company has shifted its strategy to preferential stock, as the mNAV is decreasing. Last week, the company closed a €620 million ($716.8 million) euro-denominated perpetual preferred offering, doubling its original size. The 10% Series A “Stream” The net proceeds of the preferred raises were $703.9 Million after all fees.
Michael Saylor moved Last Friday, Strategy quickly shut down reports that it was selling bitcoins. “false” And reaffirming to the public that your firm is aggressively purchasing.
The Executive Chairman of CNBC said in an interview that: “We are buying bitcoin,” Addition of Strategy “accelerating [its] purchases” He said that he will be revealing new information on Monday. Investors may have been a concern, he said. “pleasantly surprised” What the company did in recent times.
Saylor dismissed the notion that liquidation was a result of outflows in company pockets, and stressed that “there is no truth to this rumor.” The investor urged him to invest “zoom out,” Argumentating that the company is fundamentally sound despite volatile market conditions. He stated that Strategy had built an “strong base of support” The firm is confident in its positioning.
Saylor stressed the importance of Strategy’s Balance Sheet. “pretty stable” The debt is only light, and there are no immediate pressures on the balance sheet. Bitcoin is a good investment, he said. “always a good investment” Long-term and short-term are different for people with an horizon of more than one year. “digital capital” Short-term trading strategys can be used to accumulate profits.
Saylor presented a detailed outline of a plan to build Eventually, the credit product will be overcollateralized.
Conversation with Bitcoin MagazineMichael Saylor, co-founder of Strategy, outlined a ambitious “endgame”Amassing an trillion-dollar Bitcoin balance sheet, and then using that to reinvent global credit.
Saylor said the goal is to reach $1 trillion in BTC and compound it 20–30% annually, leveraging Bitcoin’s long-term appreciation. At a scale of that magnitude, he believes Strategy — and similar future treasury firms — could use their holdings to issue bitcoin-backed credit with yields far better than those in the fiat system.
Bitcoin Magazine Pro’s data shows that Bitcoin traded below $92,000 on occasion over the weekend.
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Source: bitcoinmagazine.com
