Strategy, the well-known business intelligence firm, has significantly increased its Bitcoin holdings. The company acquired an additional 390 BTC last week. This operation, valued at $43 million, was revealed in the Strategy X account on Monday. Strategy’s 390 Bitcoin purchase marks its largest acquisition in nearly a month, signaling renewed momentum.
With this latest acquisition, the Virginia-based company now holds an approximate total of 640,800 Bitcoin. This massive reserve is valued at $73.6 billion at the current price. On Monday, Bitcoin was trading around $114,800, according to market data. Immediately after the markets opened, Strategy shares rose 1.9%. This move placed them at $294 per share. Despite this daily gain, the company’s stock still shows a 4.8% drop from the $314 recorded last month.
The most notable aspect of Strategy’s 390 Bitcoin purchase is its financing method. The firm used proceeds from the issuance of preferred shares to fund the purchase. This represents a tactical shift in its usual capital-raising method. Historically, Strategy has aggressively issued common stock at a premium to increase its BTC reserves. However, the company has not issued common shares since approximately September 29. On that date, it revealed a $22 million purchase and reported having $128 million in cash. Recent acquisitions had been comparatively smaller, totaling 196 and 219 BTC in previous buys.
Will Strategy continue to set the pace for Bitcoin’s price?
The news comes at an opportune time. Bitcoin is trading near its two-week high. The risk-asset market is benefiting from easing recent geopolitical tensions. In this scenario, Citi analysts recently described Strategy as a “bellwether” for BTC’s potential momentum. The investment bank set an optimistic price target of $485 per share for the firm. However, the report also included a clear warning. They cautioned that an abrupt drop in Bitcoin’s price could lead to magnified losses for shareholders.
Co-founder and Executive Chairman Michael Saylor celebrated the purchase on the X platform. The market is now watching whether the premium at which Strategy trades above its BTC holdings will hold. This premium has notably shrunk, falling from 1.25x to 1.16x over the past month, according to Bitcoin Treasuries. Strategy’s move reaffirms its bullish stance without diluting common shareholders. This solidifies it as one of the public companies with the most direct exposure to Bitcoin in the world.
