Strategy shares experienced a notable decline, dropping as much as 10% today, with the current trading price at $142.88 and a session low recorded at $140.25, marking the lowest point within the stock’s 52-week range.
Strategy has established itself as a bitcoin treasury firm while simultaneously continuing its enterprise analytics software operations. The company’s stock consistently reflects a leveraged proxy for Bitcoin, often magnifying the cryptocurrency’s volatility. Consequently, reductions in Strategy’s stock price tend to outpace the fluctuations in bitcoin, serving as an indicator of the broader market’s risk appetite.
The sell-off observed on Thursday was exacerbated by widespread weakness in broader markets. Major technology firms faced declines ahead of their earnings reports, with Microsoft experiencing a drop of over 11% and Apple set to announce results following the market close.
Conversely, Meta shares appreciated by 11%, driven by strong earnings performance.
Strategy ($MSTR) Announces Additional Bitcoin Acquisitions
Earlier this week, Strategy disclosed another significant bitcoin acquisition, purchasing 2,932 BTC for $264 million, which raises its total holdings to 712,647 BTC. These purchases were executed at an average price of $90,061 per coin, increasing the company’s total bitcoin holdings to 712,647 BTC.
As of Monday, the firm’s cumulative purchase price for its bitcoin holdings is approximately $54.2 billion, inclusive of fees and expenses, resulting in an average acquisition cost of $76,037 per bitcoin. The funding for the latest acquisitions was sourced from proceeds generated through Strategy’s at-the-market (ATM) offering program.
According to the filing, during a five-day period, the firm sold 1,569,770 shares of its Class A common stock, MSTR, yielding approximately $257 million in net proceeds. Additionally, it sold 70,201 shares of its perpetual preferred stock, STRC, raising an extra $7 million, culminating in total ATM proceeds of around $264 million.
As of January 25, Strategy indicated that it retains significant capacity within its ATM programs, with approximately $8.17 billion available for future issuance under its common stock offering. Moreover, the company maintains several preferred stock programs, including STRK, STRF, STRC, and STRD, collectively representing tens of billions of dollars in potential future capital raises.
With more than 712,000 BTC currently held on its balance sheet, Strategy controls approximately 3.4% of Bitcoin’s finite supply of 21 million coins.
At the time of this report, Bitcoin is priced at $83,559, with a 24-hour trading volume of $61 billion. The cryptocurrency has experienced a 7% decline in the last 24 hours.
Bitcoin is currently 7% below its 7-day all-time high of $89,639, and at parity with its 7-day all-time low of $83,877.
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