MMMStrategy Buys Bitcoin Again: Deal Details and Reserve Growth
Strategy, known for its aggressive Bitcoin accumulation strategy, resumed purchases after a ten-week pause. Michael Saylor announced his return to the market with a post saying "We're back", although the current market situation looks ambiguous for investors.
The purchase amounted to 4,603 BTC for $369.7 million, with an average entry price of $80,318 per coin. At the time of news publication, the Bitcoin rate was around $78,700, meaning assets were bought above market price and a temporary loss was recorded.
To finance the deal, the company did not use earned funds but attracted capital from shareholders. That same week, Strategy placed 4.5 million of its own shares, raising $602.8 million. These funds were distributed as follows:
- $369.7 million directed towards Bitcoin purchase
- $151.8 million used to repurchase its own preferred shares
- $50.7 million paid out as dividends on preferred shares
- $30 million replenished the company's dollar reserve
The company's liquidity volume has reached impressive scales. In addition to $1.61 billion in free cash, Strategy has formed a "dollar reserve" of $5.1 billion. This is almost seven billion dollars in fiat assets, which contrasts with years of rhetoric stating that the dollar is melting ice and only Bitcoin should be held.
Strategy's portfolio continues to grow. In total, the company owns 845,050 BTC acquired for a total of $63.73 billion. The average purchase price of all Bitcoins in the portfolio is $75,412 per coin, allowing the company to remain profitable even amid current market fluctuations.
