Strategy spends another $742 million to buy Bitcoin Interpretation

Strategy (formerly MicroStrategy), the world's largest listed company, has once again increased its holdings in Bitcoin. The company's filings with the Securities and Exchange Commission (SEC) show that from February 3 to 9, Strategy purchased 7,633 bitcoins at an average price of $97,255 per coin, with a total investment of $742 million.

Currently, Strategy holds a total of 478,740 bitcoins, worth more than US$46 billion at the current price.

According to Michael Saylor, the company's co-founder and executive chairman, the average cost of Bitcoin held by Strategy is $65,033 per coin, with a total cost of about $31.1 billion (including handling fees, etc.). This means that Strategy currently holds 2.2% of the total Bitcoin supply (about 21 million).

Continue to increase holdings with large amounts of money, and unswervingly hold long-term strategy

Strategy's acquisition of Bitcoin this time comes in part from recent equity financing, including the sale of 516,413 Class A common shares (raised $179 million) and 7,300,000 shares of 8.00% Series A permanent preferred shares (raised $563.4 million).

As of February 9, Strategy still held $4.17 billion in for saleable shares, as part of its $21 billion stock issuance program and a $21 billion fixed income securities issuance program. The plan aims to raise $42 billion over the next three years to continue to increase its holdings in Bitcoin.

The company announced a rebrand last week, renamed "MicroStrategy" from "Strategy", highlighting its Bitcoin-centric strategic direction and also announced its fourth-quarter 2024 financial report. The financial report shows that the company's Bitcoin holdings nearly doubled month-on-month, but operating costs have increased significantly, resulting in a net loss expanding to US$670 million.

The market value premium is controversial, but the stock price continues to soar.

As of last Friday's closing, Strategy's total market value reached US$82.3 billion, far higher than its Bitcoin net asset value (NAV). The company's continued practice of buying Bitcoin by selling stocks and issuing bonds has sparked doubts from some investors and controversy over the NAV premium.

Nevertheless, Strategy's share price has risen by more than 518% over the past year. The closing price last Friday was $327.56, up 0.7%; pre-market trading rose 1.9% on Monday.

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