Strategy Eyes Historic 100th Bitcoin Purchase as MSTR Trades Near Treasury Value
Michael Saylor, the chairman of Strategy Inc. (NASDAQ: MSTR), has hinted that the firm is about to make its 100th Bitcoin acquisition, which
Quick overview
- Michael Saylor, chairman of Strategy Inc., has indicated that the company is nearing its 100th Bitcoin acquisition, marking a significant milestone in its accumulation journey.
- Despite recent market volatility, Strategy has continued its Bitcoin purchases, owning 717,131 Bitcoin at an average price of $76,027 per coin.
- MSTR's stock has shown relative resilience, trading at $131.05, while Bitcoin has dropped nearly 23% in the past month.
- Saylor is expected to discuss the company's treasury strategy at the upcoming 'Bitcoin for Corporations' conference, which may further influence corporate interest in Bitcoin.
Michael Saylor, the chairman of Strategy Inc. (NASDAQ: MSTR), has hinted that the firm is about to make its 100th Bitcoin acquisition, which would mark a significant milestone in its Bitcoin BTC/USD accumulation journey. This is over six years after the company initially staked its treasury on the top cryptocurrency in the world.
Saylor utilized a StrategyTracker graphic titled “The Orange Century,” which he has frequently used to hint at impending Bitcoin purchases, to mark the milestone over the weekend. Since August 2020, the business has acquired 99 companies, thus its next acquisition will represent a significant 100 years in what has grown to be one of the most scrutinized corporate treasury strategies in financial history.
Strategy’s BTC Accumulation Without Pause
Strategy has shown no signs of backing down, even if the cryptocurrency markets had a rough February. Over the past month, Bitcoin has dropped almost 23% to about $68,000. An more purchase this week would bring the company’s 12-week streak of Bitcoin purchases to 13. The strategy currently owns 717,131 Bitcoin, which was purchased for an average price of roughly $76,027 per coin, for a total investment of about $54.5 billion. Those equities are worth close to $48.8 billion at current prices, which puts the company about $5.7 billion below its cost base.
Strategy continues to generate money through debt issues, preferred shares, and stock issuances to finance further acquisitions rather than selling off any holdings to close that gap. Saylor has stuck to this strategy despite market volatility.
Strategy (MSTR) Stock Holds Relative Ground
MSTR’s stock ended Friday’s trading session at $131.05, up 1.24%, despite Bitcoin’s slight increase. With a five-year beta close to 3.5, the stock has historically functioned as a leveraged proxy for Bitcoin, suggesting that a 2% change in BTC can result in a 4–6% fluctuation in MSTR. Investors questioning whether the stock will outperform the underlying asset have taken notice of MSTR’s relative resiliency, as it has dropped about 13.75% year to date compared to Bitcoin’s 22% decrease.
Technically, MSTR has recovered from the $105–$110 range and is currently trading between support at $125 and resistance close to $135. The MACD displays a positive crossover, but with little expansion, and the RSI is at about 55, indicating minor bullish momentum.
The stock’s 12-month price target was recently reduced by Mizuho Securities from $403 to $320. Although some experts contend that fair value accounting standards now permit Bitcoin appreciation to flow more directly through the income statement, the company’s most recent results still showed a $12.4 billion net loss and a $17.4 billion unrealized digital asset loss.
Strategy’s Bitcoin Conference and Long-Term Vision
Saylor is anticipated to elaborate on the company’s treasury philosophy at Strategy’s “Bitcoin for Corporations” conference, which will take place in Las Vegas from February 24 to 25. The occasion might attract more business interest in adopting Bitcoin, a trend that Strategy itself sparked. The business has sparked a wave of businesses switching to digital asset treasury methods since its initial $250 million acquisition in August 2020.
The trip has been dramatic but lucrative for long-term shareholders: since that original purchase, MSTR shares have increased by about 950%. The big question going into the latter days of February is whether the company can maintain that trajectory as it gets closer to its 100th purchase — amid a backdrop of ETF outflows, regulatory uncertainty, and Bitcoin that is far below Strategy’s cost base.
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