Strategy (MSTR), the largest corporate holder of bitcoin, has announced the acquisition of 397 BTC—valued at $45.6 million—last week, bringing its total bitcoin holdings to 641,205 coins, now worth over $69 billion.
Funding methods for latest purchase
According to a recent company filing, the majority of this latest purchase was funded through sales of common stock, with a small portion coming from the issuance of preferred shares.
The average purchase price for the new bitcoin was $114,771 per coin.
For up-to-date and historical details on the company’s bitcoin holdings, see the MicroStrategy historical bitcoin holdings tracker.
Impact of share price decline
MSTR shares have slid 1.7% in premarket trading, coinciding with a weekend drop in the price of bitcoin, which has fallen below $108,000.
The company’s recent guidance states that it would not raise money through common stock sales if its enterprise value drops below 2.5 times the value of its bitcoin reserves, a metric known as mNAV.
Currently, MSTR’s mNAV stands at just over 1x, making further large bitcoin purchases through share sales unlikely in the near future.
Strategy’s bitcoin accumulation approach
Alongside its third-quarter earnings report, Strategy reiterated its commitment to bitcoin as a reserve asset. According to the company:
“We will not raise capital through common stock sales when our enterprise value is less than 2.5 times the value of the bitcoin on our balance sheet.”
