Strategy (MSTR), formerly known as MicroStrategy, has continued to increase its bitcoin holdings after a week of pause in purchases. Specifically, the company bought an additional 7,633 BTC for a total value of $742.4 million, bringing the total amount of Bitcoin it owns to 478,740 BTC. Equivalent to about 2% of the total global Bitcoin supply.
According to information from Executive Chairman Michael Saylor, this purchase was made at an average price of $97,255 per bitcoin, bringing the company's overall average purchase price to $65,033.
In the week ending Feb. 2, Strategy did not make any bitcoin purchases, likely because the company was in a "blackout period" related to its earnings report. On February 6, the company announced its fourth-quarter financial statements, recording a net loss of $3.03 per share, compared to a profit of $0.50 per share in the same period last year.
According to the 8-K filing, the purchase of bitcoin this time was funded through funds from the sale of shares under the sale agreement and the issuance of Strike's perpetual preference stock (STRK). As usual, Michael Saylor continued to hint at the deal on social media before officially announcing the purchase of BTC.
MSTR shares rose slightly during the day. Source: Google.com
STRK is currently trading on the Nasdaq at around $85, higher than the previous listing of $80. STRK shares have a 10:1 conversion ratio, meaning that each STRK share can be exchanged for one-tenth of Strategy's common stock.
As of the end of 2024, Strategy's Bitcoin (BTC Yield) yield will reach 74.3%, which is much higher than the record 47.3% in 2021. The company has raised its BTC profit target for the next three years to 15% per year, compared to 6%-8% previously. BTC Yield is an index that measures the performance of a company's Bitcoin buying strategy, reflecting the growth in the number of Bitcoins per share.
In Q4, this index reached 48%, a sharp increase compared to 5.1% in Q3. Strategy also introduced two new metrics to evaluate future performance: BTC Gain, which represents the amount of Bitcoin the company had at the beginning of the period multiplied by that period's BTC Yield, and BTC Gain, which converts BTC Gain to USD value based on the Bitcoin price on the last day of the quarter.
In 2024, Strategy achieved a BTC Gain of 140,538 BTC and set a goal of BTC Gain of $10 billion for 2025.