TLDR
- Strategy buys 1,142 BTC as MSTR drops and market sentiment stays weak
- Bitcoin slide pushes Strategy’s paper losses near $5.2B mark
- Analysts say Strategy’s structure still supports long-term BTC bet
- New share sales fund fresh bitcoin buys amid volatility
- Strategy doubles down on BTC despite stock and balance sheet pressure
Strategy (MSTR) shares began the week under pressure as its stock traded near $130.59 and fell more than 3%. The company added 1,142 BTC during the latest accumulation phase, but the market reaction stayed weak. However, the move still expanded its already large bitcoin position and reinforced its long-term accumulation plan.
Strategy Adds New Bitcoin Tranche Amid Ongoing Market Weakness
Strategy acquired the additional BTC between Feb. 2 and Feb. 8 using proceeds from recent share sales. The firm purchased the bitcoin at an average price of $78,815 and allocated about $90 million to the transaction. The company continued to grow its treasury even as bitcoin traded lower through the week.
Strategy now holds 714,644 BTC worth nearly $49.2 billion based on current market prices. The firm accumulated these holdings at an average cost of $76,056 and spent about $54.4 billion in total. Yet the decline in bitcoin left Strategy with paper losses that approached $5.2 billion.
Strategy funded the new purchases through at-the-market sales of its Class A shares. The company sold more than 616,000 shares for nearly $89.5 million last week. Furthermore, Strategy still holds authorization to issue about $7.97 billion worth of additional shares.
MSTR Declines as Market Evaluates Balance Sheet and Downside Scenarios
MSTR continued to trade lower after Strategy expanded its holdings before bitcoin’s sharp late-week slide. Strategy completed the bulk of its purchases early in the week when bitcoin traded above current levels. Consequently, the later decline pushed the firm’s average prices further from spot value.
Strategy reported a sizable quarterly loss after bitcoin’s drop cut the value of its balance sheet. The company noted that the markdown created one of the largest quarterly losses for a U.S. public company. Even so, the firm stated that its bitcoin reserve remained central to its long-term strategy.
Strategy explained that bitcoin would need to fall near $8,000 for long periods to strain its debt service. The firm outlined that such a drop would equalize its reserves and net debt. Hence, the company could then need restructuring or additional capital measures.
Analysts Maintain Supportive Outlook on Strategy’s Structure and Position
Some analysts argued that Strategy strengthened its standing as a corporate bitcoin holder despite the downturn. They noted the firm maintained long-dated liabilities and preserved flexibility within its capital structure. They highlighted that Strategy now sits well-positioned for any future recovery in digital assets.
Other analysts pointed to Strategy’s focus on conservative structuring even while using leverage. They emphasized the company’s access to cash reserves and absence of major debt maturities before 2028. Moreover, they said that these factors reduce near-term pressure during the ongoing price weakness.
Strategy added BTC again while bitcoin traded near $69,000 early Monday. The company’s MSTR shares dropped nearly 4% during the same session. Yet the accumulation underscored Strategy’s ongoing commitment to expanding its bitcoin treasury despite short-term volatility.
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