Quick Takeaways
- Strategy bought 1,229 bitcoin for about $109 million after a short pause.
- Total holdings reached 672,497 BTC with an average cost of $75,000.
- Purchases were funded through MSTR stock sales under an ATM program.
Strategy has returned to bitcoin buying. The company added 1,229 BTC after a brief pause last week. The purchase cost about $108.8 million. Strategy paid an average of roughly $88,568 per bitcoin.
The move followed a week of balance-sheet consolidation. It also confirmed Michael Saylor’s “Back to Orange” signal. Strategy disclosed the purchase in a Form 8-K filing. The filing was released on Monday.
Stock Sales Fund the Latest Bitcoin Buy
The bitcoin purchase was funded through equity issuance. Strategy sold shares under its at-the-market program.
Between Dec. 22 and Dec. 28, the firm sold 663,450 MSTR shares. Net proceeds totaled $108.8 million after commissions.
The company used all proceeds for bitcoin accumulation. No debt financing supported the transaction.
During the same period, Strategy did not issue preferred stock. Programs tied to STRF, STRC, STRK, and STRD remain unused.
The filing shows Strategy retains flexibility. It still holds significant issuance capacity.
Bitcoin Holdings Reach New High
With the latest purchase, Strategy’s bitcoin stash grew larger. Total holdings now stand at 672,497 BTC.
The firm has spent about $50.44 billion acquiring bitcoin. Its average cost basis is $74,997 per BTC.
Bitcoin traded near $87,300 at the time of reporting. That values Strategy’s holdings at about $58.7 billion.
On paper, the company sits on more than $8 billion in gains. That figure fluctuates with market prices.
Strategy also holds $2.19 billion in USD reserves. Those funds support dividends and debt obligations.
Analysts Split on Strategy’s Balance Sheet Moves
Market reaction to the Strategy’s approach remains mixed. Analysts see both signs of strength and caution.
TD Securities recently reaffirmed a buy rating on Strategy. It set a $500 price target over the next year.
The firm said large cash reserves improve resilience. They could help Strategy survive a prolonged downturn.
Other analysts are less optimistic. CryptoQuant flagged the reserve buildup as defensive.
The firm suggested that the Strategy may expect deeper drawdowns. It views liquidity as preparation, not confidence.
JPMorgan focused on a different factor. It said holding bitcoin through volatility matters most.
According to JPMorgan, Strategy’s conviction influences sentiment. Miner behavior plays a smaller role near term.
Index Risk and Market Outlook
Investors are also watching MSCI closely. A key index decision is expected on Jan. 15.
MSCI is reviewing rules for digital asset treasury firms. Companies with crypto above 50% of assets may face exclusion.
Strategy urged MSCI to abandon the proposal. It warned of index instability and policy conflicts.
Strategy shares traded near $156 at last check. The stock is down over 45% year-to-date.
Despite volatility, Strategy continues its strategy. It buys bitcoin during dips and consolidations.
Saylor’s “Back to Orange” message reinforced that stance. The firm remains one of bitcoin’s largest holders.
For markets, the signal is clear. Strategy still believes long-term bitcoin exposure matters.