Michael Saylor’s company, now simply called Strategy, has done it again. The firm has made its fifth consecutive weekly Bitcoin purchase, acquiring 4,048 BTC for $449.3 million. This aggressive accumulation further cements its position as the world’s largest corporate Bitcoin holder, demonstrating a relentless commitment to its BTC-focused strategy even as prices decline.
The Details of the Latest Purchase
The company continues to execute its strategy with precision, using a dip in the market to its advantage.
- Bitcoin Purchased: 4,048 BTC
- Total Spent: $449.3 million
- Average Price Paid: $110,981 per Bitcoin
- New Total Holdings: 636,505 BTC
- Total Investment: $46.95 billion
- Average Cost Basis: $73,765 per bitcoin
The purchase was teased by Michael Saylor himself on August 31, when he tweeted that “Bitcoin is still on Sale,” signaling the company’s intent to buy.
How Strategy Funded the Purchase
In a shift from its previous guidance, Strategy funded this purchase primarily by selling its own stock.
- MSTR Shares Sold: 1.23 million shares for $425.3 million
- Other Share Sales: The company raised an additional $26.5 million from selling other share classes.
This move comes despite the company’s earlier promise to avoid selling MSTR shares when certain metrics were low, highlighting its unwavering priority to accumulate Bitcoin above all else.
MSTR Stock and Bitcoin Price Correlation
The purchase comes at a time when both the MSTR stock and Bitcoin’s price are facing headwinds.
- MSTR Stock: Down over 15% in the past month, though it saw a slight 1% bounce in pre-market trading.
- Bitcoin Price: Down over 12% from its all-time high of $124,000.
The strong positive correlation between the stock and the asset it holds means that when Bitcoin dips, MSTR often dips harder. However, the company’s strategy is explicitly long-term, betting that Bitcoin’s future appreciation will vastly outweigh current stock price volatility.
A Positive Legal Development
Amid the market downturn, Strategy received a piece of positive news. A class-action lawsuit against the company and Michael Saylor over alleged accounting errors has been dismissed with prejudice.
This means the plaintiffs voluntarily dropped their claims and are barred from refiling the same lawsuit, removing a significant legal overhang from the company.
The Bottom Line
MicroStrategy’s latest purchase is a powerful testament to its “Bitcoin-first” philosophy. Despite short-term stock price pain and a falling BTC price, the company remains completely focused on its long-term goal: accumulating as much Bitcoin as possible. For investors, this represents a pure-play bet on Bitcoin’s future through a traditional equity, albeit with the added volatility that comes with it.
