Strategy Invests $1.2 Billion in Bitcoin, Marking Its Largest BTC Purchase Since July

Strategy Makes Its Largest Bitcoin Acquisition in Over Five Months

On Monday, Strategy announced its most significant Bitcoin purchase since last summer, acquiring approximately 13,600 BTC in the past week. This recent acquisition, detailed in a press release, is valued at more than $1.2 billion based on current Bitcoin prices.

The company, headquartered in Tysons Corner, Virginia, now holds a total of 687,400 Bitcoins, which are collectively worth over $62.8 billion as Bitcoin’s price hovered near $91,415, according to CoinGecko. Just a week ago, the cryptocurrency was trading around $93,000 as U.S. markets opened.

To fund this major purchase, Strategy primarily relied on issuing common stock, selling 6.8 million shares to raise $1.1 billion. Additionally, the firm issued $119 million in STRC preferred stock—a high-yield investment option that co-founder and Executive Chairman Michael Saylor has promoted as a safer alternative to traditional savings accounts, particularly for conservative investors and retirees.

This marks the first time since late July that Strategy has invested over $1.2 billion in Bitcoin within a single week. Back then, the company acquired 21,000 BTC after completing a $2.5 billion public offering of STRC.

Stock Performance and Bitcoin Holdings

Strategy’s shares opened at around $157 on Monday, reflecting a 5.7% decline from Friday’s closing price, according to Yahoo Finance. The drop followed concerns about the Federal Reserve’s independence after Chair Jerome Powell warned of a potential criminal investigation led by Trump. Despite this, MSTR shares rebounded above $159 later in the day, representing a 1% increase.

With this latest acquisition, Strategy’s average purchase price for its Bitcoin holdings stands at $75,300 per coin. To date, the company has invested $51.8 billion in Bitcoin, making it the largest corporate holder of the cryptocurrency, as reported by Bitcoin Treasuries.

MSCI’s Decision and Its Impact

Last week, Strategy investors welcomed the news that MSCI, a major provider of stock market indices, decided not to remove companies with significant cryptocurrency exposure from its products. This decision came after concerns raised by JPMorgan analysts in November, who cautioned that excluding Strategy from MSCI indices could lead to billions in outflows for MSTR. For now, MSCI has postponed any changes, maintaining index eligibility for firms focused on digital assets and infrastructure through its February review.

Strategy expressed gratitude to the Bitcoin community and its shareholders on X, calling MSCI’s move “a strong outcome for neutral indexing and economic reality.”

Financial Metrics and Analyst Outlook

According to the company’s website, Strategy’s multiple-to-net asset value (mNAV) was 1.03 as of Monday. After fluctuating last year, some analysts anticipate that this key metric for Strategy’s Bitcoin investment strategy could return to previous highs.

Further Developments and Market Reactions

Despite the positive news, some observers noted that MSCI’s recent decision may not be entirely advantageous for companies like Strategy. MSCI stated it would not increase the number of shares used to determine the company’s weighting in the index.

When Strategy issues new common shares to fund Bitcoin purchases, MSCI will not automatically buy additional shares of the company. The index provider also mentioned it would review the eligibility of “non-operating companies” more broadly in the future.

Some Bitcoin supporters, such as broadcaster and filmmaker Max Keiser, dismissed concerns about MSCI’s decision not to adjust for increases in Strategy’s share count. On X, Keiser commented, “The cap by MSCI to exclude new MSTR shares in its weighting is a nothing-burger. Forced buying is still triggered when Bitcoin-heavy MSTR stock price increases.”