The Bitcoin treasury company known as Strategy, under the leadership of Michael Saylor, has reaffirmed its commitment to acquiring Bitcoin (BTC) despite current market challenges. Recently, the company disclosed that it purchased an additional 1,142 BTC between February 2 and 8 for an approximate cost of $90 million.
The average price paid per Bitcoin during this acquisition was reported at $78,815. With this latest addition, Strategy”s total Bitcoin holdings now stand at 714,644 BTC. The market value of these holdings is roughly $49 billion, while the total cost incurred by the company, including associated fees, is approximately $54.3 billion. As a result, Strategy faces about $5.1 billion in unrealized losses at current prices.
This latest purchase represents over 3.4% of Bitcoin”s total 21 million supply. The new acquisitions were financed through proceeds from an “off-market” sale of Strategy”s Class A shares, which trade under the ticker symbol MSTR. Prior to the acquisition, Saylor hinted at the company”s strategy on social media with a post stating, “Orange Dots Matter.”
In its fourth-quarter earnings report, Strategy acknowledged a loss largely attributed to the recent downturn in Bitcoin prices affecting its balance sheet. During the earnings call, Strategy CEO Phong Le asserted that unless Bitcoin were to plummet to $8,000 and maintain that level for an extended period of 5 to 6 years, the company would face no critical risks in servicing its convertible debt obligations. Analysts have pointed out that, despite employing leverage, Strategy has managed its liabilities in a responsible and long-term focused manner.
