Bitcoin: Strategy buys another 334 BTC and increases its reserve to 848,000

Strategy continues to buy Bitcoin. Michael Saylor’s company just acquired an additional 334 BTC for $28.7 million, bringing its total reserve to exactly 848,000 BTC. The average price of the last purchase reached $85,838.80. In total, the company has now dedicated almost $63.97 billion to its massive Bitcoin treasury.

Strategy adds another 334 Bitcoin

The purchases were made between October 1 and 4. Strategy thus went from 847,666 to exactly 848,000 BTC. The company had already increased its reserves to 846,842 BTC after a $100 million purchase in June. The buildup has continued since then, with a few pauses.

The last purchase represents $28.7 million. Strategy paid an average of $85,838.80 for each of the 334 Bitcoins, significantly more than its historical average acquisition price.

Across all of its 848,000 BTC, the group now has an average cost of around $75,440.70 per Bitcoin. The total cost is approaching $63.97 billion.

Strategy stock alone represents a little more than 4% of the 21 million bitcoins that could exist. 334 BTC looks almost small next to it.

Part of the purchase financed by MSTR shares

Strategy did not dip entirely into its cash flow to fund the deal. Between October 1 and October 4, the company sold 92,894 shares of MSTR stock and collected approximately $15.7 million net. The remaining 13 million was financed directly with its dollar liquidity.

The method is well known. Strategy regularly uses financial markets to raise capital before redirecting it to Bitcoin. At the end of August, the company had already resumed its purchases with 4,603 BTC acquired for $369.7 million.

But the company no longer automatically devotes all the money raised to BTC. During the same October 1-4 period, it also spent $73.7 million to repurchase 740,634 STRC shares. Between September 28 and 30, 102.6 million had already been devoted to these buybacks.

Strategy is now juggling between accumulation of Bitcoin, dollar reserves and management of its various financial instruments. Michael Saylor also claims that the group has $5.7 billion in dollar assets. Enough to maintain a certain margin.

Bitcoin brings Strategy nearly $21 billion in third quarter

The rise in Bitcoin has greatly inflated the group’s accounts. Strategy estimates its third-quarter digital asset gain at around $20.91 billion. As of September 30, the book value of its digital assets reached approximately $70.82 billion.

A few weeks earlier, however, the accumulation had slowed down. On September 20, Strategy still held 845,050 BTC after two weeks without new purchases. The break didn’t last. The company now owns 848,000 BTC and continues to buy despite an average price higher than what it paid across its entire position.

This difference is starting to matter. The last batch cost $85,838.80 per BTC, compared to around $75,440.70 for the entire pool. Strategy therefore buys more expensively than before. But the amounts are also getting smaller. This week’s 334 BTC is a far cry from the acquisitions of several thousand bitcoins seen at other times of the year.

The general strategy does not really change. Since 2020, Michael Saylor has transformed his company’s balance sheet around Bitcoin. Six years later, Strategy now owns more than 4% of the network’s peak supply. 848,000 BTC. And still no sign of stopping definitively.