- Bitcoin development company Strategy greenlit an $835.6 million BTC purchase last week.
- Many criticized the fintech giant for executing a large purchase at an average of $102,171 per BTC as the premier digital asset dipped to $92K on Monday.
Strategy’s (formerly MicroStrategy) latest filing confirmed what its chairman, Michael Saylor, promised last week. The company accumulated more Bitcoin (BTC) amid the shaky market. However, its new purchase immediately saw a significant slump on Monday.
Strategy’s New Bitcoin Purchase Announcement
According to Strategy, it acquired 8,178 BTC between November 10 and 16 for $835.6 million. The transactions settled at an average of $102,171 per BTC.
Strategy’s filing revealed that it sourced $136.1 million from the offerings of its Series A Perpetual Strife (STRF), Stretch (STRC), and Strike (STRK) preferred stocks during the same period. Meanwhile, it gathered the remaining funds from the €608.8 million ($703.9 million) in net proceeds from its Series A Perpetual Stream Preferred Stock (STRE) offering on November 13.
The acquisition increased the Bitcoin development company’s holdings to 649,870 BTC, accounting for roughly 3.26% of the premier digital asset’s circulating supply or 3.09% of its limited supply of 21 million.
The latest development raises Strategy’s BTC yield to 27.8% year-to-date (YTD), a substantial jump from the 26.1% it reported the previous week. BTC yield is a metric that represents how effectively the business is increasing its Bitcoin holdings per share.
So far, Strategy has already injected $48.37 billion into building up its Bitcoin treasury. The figures translate to a dollar-cost average of $74,433 per BTC, a $354 climb from its disclosure last week.
Did Strategy Pull the Trigger Too Soon?
Many in the crypto community cheered Strategy’s bold move amid the uncertainty gripping the market. On the other hand, critics ridiculed the company for supposedly timing its trade poorly.
Hours before Strategy’s announcement on Monday, Bitcoin fell briefly to $92,971.17 after breaching key support levels that triggered a chain of automated sell orders across various exchanges. By afternoon, Coinglass reflected over $312 million liquidated leveraged positions in BTC, comprising $120 million in long positions and $192 million in shorts due to market volatility. All these occurred as market sentiment hovered within the “Extreme Fear” territory of the Crypto Fear & Greed Index at a score of 14.
BTC’s drop immediately wiped out $75.24 million in Strategy’s last batch of purchases. This meant an immediate unrealized loss of $9.2K per BTC in the company’s new buy.
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