Michael Saylor’s Strategy buys 390 Bitcoin for $43 million

Michael Saylor’s Strategy continues to buy Bitcoin, despite the asset trading near historic highs.

While markets debate whether bitcoin is overheated, Michael Saylor is still buying, showing his continued confidence in BTC’s long-term trajectory. On Monday, September 27, Strategy reported purchasing an additional 390 Bitcoin for $43 million, for $111,117 each.

Strategy’s latest Bitcoin acquisitions and key metrics | Source: Strategy

In the latest purchase, Strategy used preferred stock issuance through an at-the-money program, instead of cash flow or debt. This enables the firm to increase its Bitcoin (BTC) accumulation without impacting short-term liquidity. However, it has the potential to dilute shareholders over time.

This was Strategy’s third purchase this month, which amounted to 914 BTC, at a total cost of $101 million. The average cost for this batch was $110,500 per BTC, which is 49% higher than its current total average cost of $74,032.

Strategy accelerates its Bitcoin buying spree

Buying BTC near historic highs shows Saylor’s conviction that the asset is still undervalued. What is more, markets seem to think the same, as traders have reacted positively to the announcement. Namely, MSTR stock was up 2.69% during trading hours on the same day of the purchase, reaching $296.67.

Still, the company’s stock remains more volatile than Bitcoin itself. In the last three months, MSTR fell 26%, due to ongoing volatility in the crypto markets. Still, the stock is up 16% over the past year.

Strategy remains the largest corporate Bitcoin owner, with 640,808 BTC. This figure represents 3% of the total possible BTC supply, which caps out at 21 billion, as well as over 5% of its circulating supply, currently at 19.5 billion.