The company's Bitcoin treasury (formerly MicroStrategy) purchased an additional 7,633 BTC for approximately $742.4 million, averaging $97,255 for one BTC over the period from February 3 to February 9, according to an 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC) on Monday.
The company currently holds 478,740 BTC, worth over $46 billion. The total amount held by Strategy was purchased at an average price of $65,033 per Bitcoin, with a total cost of approximately $31.1 billion, according to Michael Saylor, co-founder and CEO of the company. Thus, Strategy holds over 2.2% of the total supply of 21 million BTC.
Recent purchases were made after the company sold an additional 516,413 Class A shares (worth $179 million) and 7,300,000 shares of the 8% Series A Perpetual Preferred Stock (worth $563.4 million). As of February 9, the company reported approximately $4.17 billion worth of shares available for sale under the '21/21 plan', aiming to raise a total of $42 billion from equity and fixed-income securities issuances to acquire more Bitcoin.
Bitcoin Strategy
Strategy, which rebranded from MicroStrategy on Wednesday with a logo featuring a stylized orange '₿' symbol, has purchased around $20 billion in Bitcoin just in the past few months and paused its buying spree for the previous 12 weeks when it announced its earnings report last week.
Strategy reported a net loss of $670.8 million in Q4 2024 on Wednesday, with operating expenses increasing 693% year-over-year to $1.1 billion. This figure includes over $1 billion in impairment losses related to the amount of Bitcoin the company holds, compared to $39.2 million in the same quarter of 2023.
Previously, the value of the company's digital assets on the books had to be written down when the price fell, but could not be adjusted upwards if the price increased unless the asset was sold. However, with Strategy applying the new fair value accounting rules from the Financial Accounting Standards Board (FASB) starting January 2025, this will lead to a one-time cumulative adjustment of $12.75 billion to the opening balance of retained earnings, according to analysts at the research and brokerage firm Bernstein.
However, there remains uncertainty about how to handle taxes on Strategy's Bitcoin holdings under the new FASB rules combined with provisions of the Inflation Reduction Act of 2022 — meaning a special exemption from the IRS is needed.
Strategy's market capitalization of $82.3 billion is trading at a significantly higher price compared to the net asset value of the company's Bitcoin, with some investors expressing concern about the company having a valuation higher than its net asset value and the Bitcoin purchase program financed by equity and debt.
According to data from TradingView, Strategy's stock rose 0.7% to $327.56 on Friday, up 518% over the past year. MSTR shares traded up 1.9% in pre-market on Monday.
