Strategy resumes bitcoin acquisitions with $742 million buy, bringing its total holdings to 478,740 BTC

From theblock by James Hunt

Bitcoin treasury company Strategy (formerly MicroStrategy) acquired an additional 7,633  BTC +2.54%

 for approximately $742.4 million at an average price of $97,255 per bitcoin between Feb. 3 and Feb. 9, according to an  8-K filing with the Securities and Exchange Commission on Monday.

The company now holds 478,740 BTC, worth over $46 billion. Strategy’s total holdings were bought at an average price of $65,033 per bitcoin for a total cost of around $31.1 billion, including fees and expenses,  according to  the company's co-founder and executive chairman, Michael Saylor. To put that in perspective, Strategy holds more than 2.2% of bitcoin’s total 21 million supply.

The latest acquisitions follow the sale of a further 516,413 shares of its class A common stock ($179 million) and 7,300,000 shares of its 8.00% Series A Perpetual Strike Preferred Stock ( $563.4 million ). As of Feb. 9, the company said approximately $4.17 billion worth of shares remained available for sale as part of its “21/21 plan,” targeting a total capital raise of  $42 billion  in equity offerings and fixed-income securities for bitcoin acquisitions.

Saylor again hinted at the likelihood of another bitcoin acquisition filing ahead of time,  sharing  an update on Strategy’s bitcoin purchase tracker on Sunday, stating, “Death to the blue lines. Long live the green dots.”

A ₿itcoin Strategy

Strategy, which  rebranded  from MicroStrategy on Wednesday with a logo including a stylized “₿” symbol and orange coloring, has acquired around $20 billion worth of bitcoin over the past few months alone,  pausing  its prior 12-week buying streak amid its earnings release last week.

Strategy  reported  a net loss of $670.8 million in the fourth quarter of 2024 on Wednesday, with operational expenses rising 693% year-over-year to $1.1 billion. That includes just over $1 billion worth of impairment losses related to the company’s bitcoin holdings, compared to $39.2 million during the same period in 2023.

Previously, digital asset values on a company's books had to be marked down when prices fell but could not be adjusted upward if prices rose unless sold. However, with Strategy adopting the Financial Accounting Standards Board’s new  fair-value accounting rules  from January 2025, this will lead to a one-time cumulative adjustment of  $12.75 billion  to the opening balance of its retained earnings, according to analysts at research and brokerage firm Bernstein.

However,  uncertainty  remains over the tax treatment of Strategy’s bitcoin holdings under the new FASB rules in combination with the 2022 Inflation Reduction Act provisions — meaning it could require a special exemption from the IRS.

Strategy’s $82.3 billion market cap trades at a significant premium to its bitcoin net asset value, with some investors airing reservations about the firm's premium to NAV valuation and its equity and debt-funded bitcoin acquisition program in general.

  Strategy shares closed up 0.7% at $327.56 on Friday, gaining more than 518% over the past year,  according to  TradingView. MSTR is currently trading up 1.9% in pre-market trading on Monday.