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Strategy (MSTR) stock, formerly known as MicroStrategy, gained 2% on Monday after the Bitcoin treasury company disclosed another purchase of the cryptocurrency, taking its total holdings to a record 848,000 BTC.
The company acquired 334 BTC for approximately $28.7 million between September 28 and October 4, according to a filing with the US Securities and Exchange Commission.
The latest purchases were made at an average price of $85,838.80 per Bitcoin.
Strategy’s total Bitcoin holdings are now worth around $73 billion.
Its average purchase price stands at $75,440.70 per Bitcoin, with the total cost of its holdings reaching around $64 billion, including fees and expenses.
Strategy expands Bitcoin holdings
The latest acquisition brings Strategy’s Bitcoin holdings to more than 4% of the cryptocurrency’s 21 million supply cap.
Based on current prices, the holdings imply around $9 billion in paper gains.
The company financed the latest purchases through proceeds from sales of its Class A common stock and its USD Cash reserve.
Strategy sold 92,894 MSTR shares for approximately $15.7 million during the previous week.
As of October 4, the company had $18.8 billion worth of MSTR shares available for issuance and sale under its at-the-market programme.
The remaining $13 million of the Bitcoin acquisition was funded using Strategy’s USD Cash holdings.
Strategy also repurchased 1.77 million STRC preferred shares last week for around $176.3 million.
The company used $154.1 million from its USD Cash reserve for the latest Bitcoin purchases, while $22.2 million came from interest earned on its cash, cash equivalents, and short-term investments.
Cash reserves support purchases
Strategy reported that its USD Reserve stood at $4.88 billion as of October 4, while USD Cash holdings were $833.4 million.
The company also used $142.5 million from its USD Reserve to fund preferred-stock dividends and interest on its outstanding debt.
Strategy executive chairman and co-founder Michael Saylor disclosed the company’s total Bitcoin holdings and average acquisition price.
Saylor also posted a Bitcoin acquisition tracker chart on X on Sunday with the caption “More orange than ever.” Similar posts have previously preceded Bitcoin acquisition announcements, although the company’s strategy has varied in recent periods.
Strategy remains the largest public-company Bitcoin holder. Bitcoin Treasuries data showed that 196 public companies have adopted some form of Bitcoin acquisition model.
Strategy estimates $20.9B gain
Strategy also provided an early estimate of its digital-asset performance for the third quarter.
The company expects to report a $20.91 billion gain on digital assets for the quarter. The carrying value of its Bitcoin holdings stood at $70.82 billion as of September 30.
Despite the latest Bitcoin purchases, both Strategy stock and Bitcoin remain below their levels from a year ago.
MSTR has gained 3% year to date but has fallen more than 50% over the past 12 months.
Bitcoin has declined around 2% year to date and is down approximately 30% over the past year.
The latest purchase underscores Strategy’s continued use of Bitcoin as a central component of its treasury strategy, while its financing activity shows the company continues to use equity sales and cash reserves to fund its cryptocurrency acquisitions.
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