Strategy has once again chosen to increase its Bitcoin holdings at a time when many investors are stepping back. On December 1, the company bought Bitcoin worth $11.7 million. This latest buy comes despite the sharp drop in the digital asset’s price and growing fear across the crypto market.
Strategy Adds More Bitcoin Despite Market Volatility
The Nasdaq-listed firm revealed in a press release that it acquired 130 BTC for $11.7 million, paying an average of $89,960 per coin. With this latest purchase, the company now holds 650,000 BTC, bought at a total cost of $48.38 billion, with an average price of $74,436 per Bitcoin. Despite the current turbulence in the crypto market, Strategy reported a 27.8% BTC yield year-to-date, which signals that the company’s long-term strategy is still working in its favor.
Strategy Continues Buying Bitcoin Despite Market Fear
Strategy’s actions continue a recognizable pattern. Two weeks ago, the company skipped its usual purchase after completing one of its largest buys. It had acquired 8,178 BTC for $836 million using funds raised from its STRE offering. Now, with markets slipping into fear, Strategy has stepped back in. Data from CoinMarketCap shows the Fear and Greed Index at 20, a level that reflects strong panic. This comes as Bitcoin’s price recently fell below $90,000, triggering widespread sell-offs and uncertainty.
However, Strategy remains calm. The company has repeatedly said it will continue accumulating Bitcoin even during a bear market. It has pointed to its actions during the 2022 crypto winter, when it kept buying even as Bitcoin traded below its average purchase price. Last month, Saylor confidently stated that his firm is built to withstand extreme fluctuations in the Bitcoin market.
Strategy Builds Cash Reserve While MSTR Stock Faces Pressure
While Strategy continues its Bitcoin push, its stock MSTR, is facing pressure. According to TradingView data, the stock is down more than 5% today, trading around $168 in premarket hours. In response to financial needs, Strategy recently created a USD reserve of $1.44 billion. The U.S.-based firm funded this large USD reserve by selling 8.2 million MSTR shares through its at-the-market (ATM) offering program.
Additionally, it also raised nearly $1.5 billion, which was used to build the reserve and help finance its latest Bitcoin purchase. Going forward, Strategy plans to keep a reserve large enough to cover at least 12 months of dividend payments. Over time, it aims to strengthen this reserve to support 24 months or more.
CEO Phong Le recently stated that selling Bitcoin would only happen as a last resort. Le said this would occur only if the company cannot raise capital and if its mNAV falls below one. For now, the Strategy intends to keep its Bitcoin untouched.