On US President’s Day, Strategy announced the purchase of an additional 2,486 BTC one day later.
Additionally, the purchase took place during a slower week on the cryptocurrency market due to the Lunar New Year festivities. For the last three weeks, this has been the largest weekly Treasury addition.
Since Strategy currently buys Bitcoin below its average purchase value of $76,027, the fresh round of purchases had an average price of $67,710. The somewhat bigger acquisition follows Strategy’s addition of 1,142 BTC during the week of February 10.
Even though Saylor’s messaging had a muted response from the market, a missed week would cast doubt on Strategy’s capacity to raise capital. Following several guarantees that the company’s strategy can withstand a crypto winter, the most recent acquisition has arrived.
Strategy continues to rely on STRC
Following a week of successful increases in the STRC preferred shares, the most recent Bitcoin acquisition has arrived.
This time, Strategy was unable to file its regular 8-K form, which details the means of generating funds, due to the bank holiday. As prices rose beyond $100 in the last week, Strategy was able to sell STRC, increasing its capacity to purchase additional Bitcoin.
While waiting for a STRC selling opportunity, Strategy continued to use its MSTR common stock ATM to purchase Bitcoin the week before. With a recent short tear sheet on the preferred stock, the company added more details about STRC.
After the most recent buy, Bitcoin was trading at $67,324.22, and MSTR was hovering around $128.62. BTC dropped back into the $66,000 level after Strategy’s news.
According to its playbook, Strategy is still the only treasury organization that can keep up with routine purchases. Other businesses only make occasional purchases; at the moment, the smallest treasury is worth 125 BTC.
Can Strategy keep making purchases?
The strategy can continue to make weekly acquisitions, primarily by providing a substantial interest rate of 11.25% on its STRC preferred shares. Despite the poor price of the common shares, the alternative is MSTR dilution.
The corporation must use its reserves to pay dividends and pay off its maturing debt in 2028 while surviving a bear market.
The days when the preferred stock trades above $100, indicating buyer interest, are when STRC sales occur. We have not made any new sales this week. In anticipation of a breakout before more sales are feasible, STRC dropped down to $99.80.
Based just on its Bitcoin investment, Strategy is sitting on an unrealized loss of $5.7 billion. The loss, which reached $7.9 billion with the current decline in price, is less than BitMine’s cut on Ethereum.
