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Strategy returns to the race, buying more than $700 million in BTC

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After the name change along with a vision focused on BTC, Strategy continued to return to buying large amounts of BTC by issuing new shares.

Strategy (MSTR), the company formerly known as MicroStrategy, has just continued to increase its bitcoin holdings after a one-week pause in purchases. Specifically, the company purchased 7,633 BTC for a total value of $742.4 million, bringing the total number of Bitcoins it owns to 478,740 BTC. Equivalent to about 2% of the total global Bitcoin supply.

According to information from Executive Chairman Michael Saylor, the purchase was made at an average price of $97,255 per bitcoin, bringing the company's overall average purchase price to $65,033.

During the week ending February 2, Strategy did not make any bitcoin purchases, possibly due to the company being in a “blackout period” related to profit reporting. On February 6, the company released its fourth quarter financial report, recording a net loss of $3.03 per share, compared with a profit of $0.50 per share in the same period last year.

According to the 8-K filing, the purchase of bitcoin this time was financed through capital from the sale of shares under the sale agreement and the issuance of Strike's perpetual preferred stock (STRK). As usual, Michael Saylor continued to allude to the deal on social media before officially announcing the purchase of BTC.

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MSTR shares rose slightly on the day. Source: Google.com
 

STRK is currently trading on Nasdaq at about $85, well above its previous listing of $80. STRK shares have a 10:1 conversion ratio, meaning that each STRK share can be converted into one tenth of Strategy ordinary shares.

As of the end of 2024, Strategy's return on Bitcoin (BTC Yield) reached 74.3%, well above the record 47.3% in 2021. The company raised its BTC profit target for the next three years to 15% per annum, up from 6% to 8% previously. BTC Yield is an indicator that measures the performance of a company's Bitcoin buying strategy, which reflects the growth of Bitcoins per share.

In Q4, the index reached 48%, a sharp increase from the 5.1% level in Q3. Strategy also introduced two new metrics to gauge future performance: BTC Gain, which represents the number of Bitcoins a company had at the beginning of the period multiplied by that period's BTC Yield, and BTC Gain, which converts BTC Gain to USD value based on Bitcoin price on the last day of the quarter.

In 2024, Strategy achieved BTC Gain of 140,538 BTC and set a target of BTC Gain of $10 billion for 2025.