Strategy splashes $1.2B in biggest BTC weekly purchase since January

Source Cryptopolitan

Strategy performed its biggest weekly purchase since January 20, adding another 17,994 BTC to its treasury. The recent purchase shows Strategy still has access to robust financing and is now accumulating more BTC below its average price. 

Strategy made its biggest BTC purchase since buying 22,305 BTC on January 20. The addition followed the previous week’s 3,015 BTC, breaking the period of relatively low additions. 

Strategy added the bigger purchase after another wave of worries about BTC and the company’s ability to keep up with its playbook. Executive Chairman Michael Saylor hinted at the potential for another purchase in his usual late Sunday post. 

The latest acquisition was valued at $1.28B, with an average price of $70,946 per BTC. Strategy’s treasury is already at 738,731 BTC, acquired for a total of $56.04B. The average price for Strategy fell to $75,862 per BTC, while BTC traded in the $67,000 range. 

As BTC sentiment remains low, Strategy is one of the few conviction buyers. Other playbook companies sit on the sidelines, while mining entities with legacy reserves switched to selling. 

Strategy increased STRC sales

Strategy managed to raise $377.1M from its STRC preferred stock, after last week’s raise of just $7.1M. Trackers of STRC showed the preferred stock led to the acquisition of 5,315 BTC. 

The main reason for the increased raises is that STRC traded in the $99-$101 period for almost a month, its longest stretch in history. This allowed Strategy to raise more funds from STRC, while also promising 11.5% in dividends from March onward. 

The bulk of the purchase was still padded by more MSTR dilution, with over $899M in common stock sold. Despite this, MSTR held at $133.50, with seemingly limited dilution effects. The new issues of MSTR have almost depleted the ATM facility, which was supposed to be open until 2030. 

Strategy used its authorized common stock on a much tighter timeline, with only $6.7B remaining for future issuance. Another $20B remains from authorized STRK preferred stock, which has not been used for months. 

STRC has $3.15B remaining from authorized stocks, with the purchase timeline depending on demand and market sentiment. For the first time, STRC fueled over 30% of the weekly purchase, and may continue to be a source of funds in the coming weeks.

Strategy buys despite extreme fear

Strategy has made many of its biggest purchases near BTC local highs. This time, the company has switched to “buying the dip,” while the BTC fear and greed index fell to eight points, or extreme fear. 

The latest Strategy announcement was followed by another BTC hike to $68,211.60, following a liquidation of short positions. BTC is still driven by the derivative market, while spot purchases and holding have a limited effect on sentiment.

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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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