Bitcoin treasury firm Strategy continued to buy despite the market slump as it increased its holdings by another 2,486 BTC.
The Strategy Added 168 Million Worth of Bitcoin to Its Reserves
In a new post on X, Strategy founder and chairman Michael Saylor shared details related to a recent Bitcoin acquisition completed by the company. With this new purchase, the company added 2,486 BTC to its treasury at a price of $67,710 per token or $168 million in total.
According to a filing with the US Securities and Exchange Commission (SEC), the purchase took place between February 9th and 16th and was financed with money from the company’s STRC and MSTR at-the-market (ATM) share offerings.
Usually, Strategy drops its purchases on Monday, but this time the announcement came on Tuesday instead. The reason for that may be the fact that this Monday was a federal holiday: President’s Day.
After the new acquisition, the holdings of the financial company increased to 717,131 BTC. The strategy spent a total of $54.52 billion on this stack, but at the current rate of the cryptocurrency exchange, its value is $48.66 billion, which means that the company’s tokens have sustained an unprecedented loss of more than 10.7%.
Strategy’s Holdings has gone underwater due to the decline Bitcoin and the digital asset sector as a whole have faced in recent months. The fall since the end of January, in particular, took the price of the token below the company’s cost base. Currently, the company’s acquisition rate is sitting at $76,027.
Despite its huge losses, Saylor’s company doesn’t seem to have stopped accumulating more Bitcoin. On Sunday, Strategy’s official X handle made an X post explaining that the company can withstand BTC’s pullback to $8,000 and still has assets left to fully cover its debt. “Our plan is to balance our revolving credit over the next 3-6 years,” Saylor noted in a reworded statement.
How Strategy's balance sheet will look in the case of an extreme price drop | Source: Strategy on X
Strategy’s latest acquisition was 99 since the company adopted the Bitcoin treasury model back in 2020. Saylor’s Sunday post touting the acquisition reflected this, with the chairman using the caption “99>98” next to an image of the company’s BTC portfolio tracker.
In related news, Ethereum’s largest financial company, BitMine, has also announced a new acquisition. The firm bought 45,759 ETH, taking its total value to 4,371,497 ETH, which is equal to 3.62% of the total amount of Ethereum in circulation.
BitMine has continued to buy even as the company’s stock has suffered significant losses due to the market downturn. “In our opinion, the price of ETH does not reflect the high usage of ETH and its role as a financial future,” commented Tom Lee, chairman of BitMine.
BTC price
At the time of writing, Bitcoin is floating around $67,700, down about 2% over the past seven days.
The trend in the price of the coin over the past month | Source: BTCUSDT on TradingView
Featured image from Dall-E, chart from TradingView.com
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