Strategy (Formerly MicroStrategy) Resumes Bitcoin Buying, Adds $742 Million Worth

Strategy, formerly known as MicroStrategy, is back in the Bitcoin market. After a brief pause, the company resumed its aggressive Bitcoin acquisition strategy, purchasing an additional 7,633 BTC for approximately $742.4 million between February 3 and February 9. This latest purchase brings the company's total Bitcoin holdings to a massive 478,740 BTC, further solidifying its position as the largest corporate holder of the cryptocurrency.

Funding the Bitcoin Binge: Stock Sales and a $42 Billion Plan

The acquisition, disclosed in an SEC filing on Monday, was made at an average price of $97,255 per Bitcoin. The purchase was funded through a combination of proceeds from the sale of Class A common stock ($179 million) and its newly issued 8.00% Series A Perpetual Strike Preferred Stock ($563.4 million). This highlights Strategy's continued reliance on equity and debt markets to finance its Bitcoin strategy.

As of February 9, Strategy still has approximately $4.17 billion worth of shares available for sale under its "21/21 plan," which aims to raise a total of $42 billion for Bitcoin acquisitions.

Michael Saylor Signals the Buy: "Death to the Blue Lines"

Executive Chairman Michael Saylor, a staunch Bitcoin advocate, had hinted at the impending purchase on Sunday, posting on X, "Death to the blue lines. Long live the green dots," referencing the company's Bitcoin purchase tracker.

A Pause, Not a Retreat: Strategy's Unwavering Bitcoin Commitment

This latest buy follows a pause last week, ending a 12-week streak of continuous Bitcoin acquisitions. Over the past few months alone, Strategy has acquired roughly $20 billion worth of Bitcoin.

The company's total Bitcoin holdings are now worth over $46 billion, acquired at an average price of $64,511 per Bitcoin, for a total cost of approximately $30.4 billion (including fees and expenses). To put this in perspective, Strategy now holds more than 2.2% of Bitcoin's total 21 million supply.

Rebranding and Accounting Changes: A New Era for Strategy

Strategy's recent rebranding reflects its complete shift in focus from its original business intelligence software business to a Bitcoin-centric treasury strategy. The new logo even incorporates a stylized Bitcoin "₿" symbol.

The company is also benefiting from new accounting rules that allow it to recognize unrealized gains on its Bitcoin holdings, which analysts at Bernstein estimate will result in a one-time $12.75 billion boost to Strategy's balance sheet. However, uncertainties remain regarding the tax treatment of these gains.