After Strategy bought 10624 BTC the week before, it had a total of approximately $963 million at an average price of $90615/BTC on December 15 company announcedthat he bought coins for another, significant amount. Listed Strategy has now purchased 10,645 Bitcoins worth $980.3 million at an average price of $92,098 per coin, according to a filing with the US Securities and Exchange Commission (SEC). In total, the company now has 671,268 BTC, which it acquired for a total of approximately $50.33 billion, for an average price of $74,972 per coin.
Bitcoin’s current price of $86,000 puts the value of Strategy’s stock at approximately $58 billion.
The strategy may have to sell some of its coins during a recession
Last week, Strategy sold $989 million worth of stock to finance the purchases, including approximately $882 million of MSTR, its Class A common stock, and $82 million of STRD, Stride’s Series A perpetual preferred stock, according to SEC filings. The main feature of the latter is that it enjoys an advantage over ordinary shares in the payment of dividends and in the eventual liquidation of the company. Strategy has slowed Bitcoin purchases significantly in recent months, and the December 15 purchase was the company’s largest weekly purchase since late July.
The company’s stock price has fallen sharply recently, closing at $176 last week, down 21% in the past month and 53% in the past six months. Now:
Bitcoin has also fallen over the past two months, but not as much; the price of BTC has fallen about 7% over the past 30 days, down more than 29% from a new high above $126,000 in early October. Strategy created a $1.4 billion cash reserve earlier this month to pay dividends and prevent potential Bitcoin sales. Although company executives admitted that they may eventually have to sell the cryptocurrency during major recessions. Analysts at Cantor Fitzgerald recently dismissed investor concerns about Strategy’s Bitcoin buying strategy as unfounded, particularly fears that the company failed to buy during the biggest cryptocurrency’s price slump. However, several analysts lowered price targets, citing Strategy’s possible exclusion from the MSCI indices as a negative factor. Last week, the company wrote a public letter to MSCI, arguing that excluding crypto reserve companies from indexes would pose a potential national security threat and repudiate President Trump’s crypto-friendly policies.
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