Strategy makes largest Bitcoin purchase in months with investment of nearly $1 billion

Source: PortaldoBitcoin Original Title: Strategy buys nearly $1 billion in Bitcoin in the largest acquisition in months Original Link: Strategy announced its largest purchase of Bitcoin in 100 days, after investing nearly $1 billion in the asset last week.

The Tysons Corner, Virginia-based company spent $963 million on 10,624 BTC, with funds coming mainly from the issuance of common stock. The company now holds 660,600 bitcoins, valued at about $60 billion based on current prices.

Strategy’s latest acquisition was significantly larger than most purchases disclosed in recent months. The purchase amount equals the total spent buying Bitcoin since mid-September, when the cryptocurrency was trading around $115,000.

Strategy’s shares remained virtually unchanged at $180. Although the company’s stock price has halved in the past six months, shares are up 7.5% over the past five trading days, while Bitcoin’s price has hovered near the $90,000 mark.

In a recent note, Cantor Fitzgerald analysts pointed out perceived changes in Strategy’s approach to buying Bitcoin as a source of fear among investors, which they described as unfounded. Among these concerns was the idea that Strategy was not taking advantage of the recent drop in Bitcoin prices.

Cantor analysts are among those who lowered their price target for Strategy last week, highlighting the company’s potential exclusion from MSCI indices as a negative factor. Strategy recently contacted the index provider to discuss this possible decision.

The negative sentiment regarding MSCI was shared by TD Cowen analysts. However, they pointed to Strategy’s recent creation of a $1.4 billion “cash reserve” as prudent, noting that it gives the company ample room to make further dividend payments.

The last time Strategy bought this much Bitcoin, the company had just announced the closing of the $2.5 billion STRC issuance, one of several dividend-paying preferred shares the company launched this year.

At the time, it was the largest crypto-linked fundraising of the year. However, Monday’s announcement seemed relatively routine. In addition to issuing common stock, the company offered $44 million in STRD, which provides a non-cumulative annual cash dividend of 10%.

Strategy’s latest move contrasts with some companies that have adopted elements of its Bitcoin buying strategy, including Metaplanet. Japan’s largest corporate Bitcoin holder is preparing to offer its own preferred shares, but has not announced any purchases since October.

Meanwhile, Twenty One Capital, a Bitcoin-buying company backed by Tether and Softbank, is preparing to trade on the New York Stock Exchange this week under the ticker XXI.

Jack Mallers, co-founder and CEO of the company, signaled that the company’s Bitcoins were on the move, with 43,500 Bitcoins being transferred from custody. On Monday, these reserves were worth about $3.9 billion.