Strategy Buys 520 Bitcoin, Boosts USD Reserve to $1.4 Billion

Strategy purchased 520 Bitcoin for $35 million and increased its USD reserve by $300 million to $1.4 billion, according to a post on X by Michael Saylor. The company's total Bitcoin holdings now stand at 847,363 BTC. Strategy stated the USD reserve increase was intended to shore up the credit quality of its Digital Credit securities and maintain the capital structure for future moves. The purchase continues the company's approach as a leveraged Bitcoin vehicle that now controls nearly 4% of the total Bitcoin supply that will ever exist.

Strategy Faced Debt Exceeding Reserves in October 2022

In a separate post on X last week, Saylor reflected on Strategy's position in October 2022. At that time, Bitcoin was trading near $20,000. Strategy held around 130,000 BTC, worth roughly $2.6 billion. MSTR shares were sitting at about $24 on a split-adjusted basis.

Bitcoin then fell below $16,000, and the company's debt briefly exceeded the combined value of its Bitcoin and cash reserves by around $300 million. The stock dropped into the $13 range by the end of that year. The company did not sell or restructure during this period.

Strategy Raised Over $60 Billion Since Late 2022

Since that low point in late 2022, Strategy has raised over $60 billion in additional capital and deployed it into Bitcoin, adding more than 716,000 BTC to its balance sheet. Today, its BTC and USD reserves exceed its total debt by roughly $48 billion, a swing of more than $48.3 billion from the moment it looked most exposed.

Saylor closed his post with a note directed at the people who held through it: "Thank you to everyone who believed, endured, and took the long view."

Weekend Purchase Averaged $67,300 Per Bitcoin

The 520 BTC bought this weekend cost around $67,300 per coin on average, based on the $35 million figure Saylor disclosed. Strategy is effectively a leveraged Bitcoin vehicle that now controls nearly 4% of the total Bitcoin supply that will ever exist.

FAQ

What did Strategy announce on X?

Strategy announced it purchased 520 Bitcoin for $35 million and increased its USD reserve by $300 million to $1.4 billion. The company stated the reserve increase was intended to shore up the credit quality of its Digital Credit securities and maintain the capital structure for future moves.

How much Bitcoin does Strategy hold now?

Strategy's total Bitcoin holdings now stand at 847,363 BTC. The company controls nearly 4% of the total Bitcoin supply that will ever exist.