In a move that reaffirms its long-term conviction, the firm Strategy revealed this Monday its most significant digital asset acquisition in recent months. Through an official statement, the company led by Michael Saylor confirmed a new Bitcoin purchase valued at nearly $1 billion, executed during last week. This announcement comes at a crucial moment, dispelling analyst doubts regarding the continuity of its aggressive accumulation policy in the current price environment.
The financial data presented details that the Tysons Corner-based company invested a total of $963 million to acquire an additional 10,624 BTC. This operation raises its total holdings to the impressive figure of 660,600 Bitcoin, a corporate treasury that, at current market prices, reaches a valuation of approximately $60 billion. The magnitude of this acquisition equals the entirety of the buying activity recorded by the firm since mid-September, when the asset was trading near $115,000.
Despite the massive volume of this operation, Strategy shares showed a moderate reaction at the start of the day, trading around $180. While the stock price has halved over the past six months, shares have managed a 7.5% advance in the last five trading days. This behavior coincides with the stabilization of the Bitcoin price around the $90,000 mark, suggesting a persistent but cautious correlation from traditional investors.
Is this the definitive signal of institutional confidence despite volatility?
The context of this operation is marked by skepticism from some sectors of Wall Street. Analysts at Cantor Fitzgerald recently pointed out that there was an unfounded fear among investors about a possible shift in the firm’s strategy, specifically the notion that Strategy was not buying the price dips. This massive buy serves as a direct rebuttal to those speculations, demonstrating that the company keeps its commitment to converting its balance sheet into a digital store of value intact.
On the other hand, the firm faces challenges regarding its inclusion in key financial indices. Analysts at TD Cowen and Cantor have adjusted their price targets citing Strategy’s potential exclusion from MSCI indices as a bearish factor. However, they also highlighted the recent creation of a $1.4 billion “cash reserve” as prudent. This financial maneuver gives Strategy ample room to make future dividend payments without compromising its operational capacity or its asset acquisition strategy.
The funding structure for this purchase came primarily from the issuance of common stock, a standard tactic in its playbook. Additionally, the company offered $44 million in STRD preferred shares, which feature an attractive 10% annual non-cumulative cash dividend. This approach contrasts with other companies attempting to replicate its model, such as Japan’s Metaplanet, which although preparing similar offers, has not reported purchases since October.
Looking ahead, the institutional landscape is diversifying with the entry of new players. Twenty One Capital, backed by industry giants, is preparing to trade on the New York Stock Exchange under the ticker XXI. Its CEO, Jack Mallers, indicated movements of 43,500 Bitcoin out of escrow, valued at $3.9 billion. The competition for supremacy in corporate Bitcoin treasury seems to be intensifying, with Strategy maintaining its undisputed leadership through decisive and constant actions.
