Strategy acquired 220 Bitcoin for $27.3 million last week at an average price of $123,561 per coin, according to a Monday press release from the world's largest corporate Bitcoin holder. The purchase was funded through proceeds from selling various preferred stocks, including STRF, STRK and STRD securities.
The timing of the acquisition meant Strategy missed an opportunity to buy during last week's market downturn. Bitcoin nosedived from above $123,000 on Thursday to as low as $103,000 on Friday during one of the worst crypto flash crashes on record, which liquidated over $19 billion in leveraged positions across the market.
At Friday's lowest point, Bitcoin traded nearly 16% below Strategy's recent purchase price. Even during the swift rebound over the weekend, the firm could have acquired tokens between $110,000 and $115,000, representing a 7% to 10% discount compared to what it paid for its latest batch.
The company now holds a total of 640,250 Bitcoin with an average acquisition price of $73,000 since launching its Bitcoin treasury strategy in 2020. Michael Saylor's firm has built the largest corporate cryptocurrency holdings through consistent purchases over the past several years.
Strategy's BTC Yield, which measures the percentage change in the ratio between the company's Bitcoin holdings and assumed diluted shares outstanding, reached 25.9% year-to-date with the new purchase. This metric helps investors track how effectively the company is accumulating Bitcoin relative to its share dilution.
The acquisition followed a 196 Bitcoin purchase announced in late September. Strategy opted not to buy additional Bitcoin during the first week of October before making this latest purchase as the cryptocurrency reached new all-time highs above $126,200.
MSTR, the firm's common stock, rose 2.5% on Monday despite trading volatility throughout the week. The stock fell from around $360 on Monday to $309 by Friday before recovering. As of Monday, MSTR remained down roughly 33% from its July peak of approximately $456.
Saylor posted on X during Friday's market crash, writing, "No tariffs on Bitcoin" as the cryptocurrency plunged nearly $20,000 in a single day. The sell-off was triggered by Trump's announcement of potential 100% tariffs on Chinese goods, which reignited fears of an escalating tradewar between the two economic powers.
Strategy has been securitizing Bitcoin for equity and credit investors through at-the-market equity offerings. The company highlighted its various preferred stock instruments that allow different types of investors to gain exposure to its Bitcoin treasury strategy through traditional financial markets.