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Michael Saylor’s Strategy Buys 13,627 Bitcoin for $1.25 Billion

Highlights:

  • Strategy purchased 13,627 Bitcoin for $1.25 billion, bringing total holdings near 687,410.
  • Latest Bitcoin buy funded by MSTR and STRC stock sales, raising large capital.
  • Strategy strengthened the USD reserve to $2.25 billion and supported the MSCI index decision.

Michael Saylor’s Strategy, formerly MicroStrategy, has added 13,627 Bitcoin for $1.25 billion. The purchase was made at an average price of $91,519 per coin. This brings the company’s total holdings to 687,410 BTC, acquired for $51.8 billion at an average of $75,353 each.

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Strategy Funds Bitcoin Purchases Through Stock Sales

The latest Bitcoin purchases were funded by sales of Strategy’s Class A stock, MSTR, and Stretch preferred stock, STRC. Last week, the company sold 6,827,695 MSTR shares for about $1.13 billion. As of Jan. 11, $10.26 billion of MSTR shares are still available for sale. Strategy also sold 1,192,262 STRC shares for around $119.1 million. About $3.92 billion of STRC shares remain available under the program.

The firm has other perpetual preferred stock programs. STRK, STRC, STRF, and STRD have at-the-market programs of $21 billion, $4.2 billion, $2.1 billion, and $4.2 billion, respectively. These programs work alongside the “42/42” plan. This plan aims to raise $84 billion through equity and convertible notes for Bitcoin purchases by 2027. It was increased from the original $42 billion “21/21” plan after the earlier equity funds were used.

The recent announcement follows Saylor hinting at another purchase on X. He shared the company’s Bitcoin portfolio tracker with the caption “₿ig Orange,” signaling a major buy.

This is Strategy’s largest Bitcoin purchase of the year and its biggest since last July. It surpasses two $1 billion purchases from last December. Earlier this year, Strategy also bought 1,286 BTC for $116 million between December 29 and January 4. Bitcoin’s price has struggled near $90,000. It briefly climbed to $92,000 following news of a criminal investigation into Fed Chair Jerome Powell, but most gains were lost soon after. Meanwhile, Strategy stock (MSTR) trades around $157, roughly unchanged from last week. The stock is up almost 2% year-to-date, after ending last year with a yearly loss.

Michael Saylor’s BTC Firm Strengthens Bitcoin Holdings and Cash Reserves

Strategy’s consistent approach has helped normalize Bitcoin in corporate treasuries. Public companies now collectively hold over 1.1 million Bitcoin, according to Bitcoin Treasuries. The purchase also signals confidence in Bitcoin’s future despite market fluctuations. Strategy’s method of stacking Bitcoin through drawdowns and paper losses highlights their steady approach. Investors are watching how the CLARITY Act and broader market conditions will affect BTC prices. Saylor’s strategy appears unchanged and prioritizes accumulation over short-term price swings.

Last week, Strategy added $62 million to its USD reserve, bringing it to $2.25 billion. The reserve helps pay dividends on preferred stock and interest on debt. This follows $748 million added just before Christmas.

In December, Strategy asked MSCI to drop a plan that would remove companies holding over 50% of assets in digital currency from its indexes. The company said the move would cause unstable index changes and go against U.S. support for digital assets. On Jan. 6, MSCI decided it will not remove digital-asset treasuries from its indexes in the February rebalancing. This ended months of uncertainty for crypto-related stocks.

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