Strategy expands bitcoin holdings to 848,250 BTC after $21.5 million purchase

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Strategy expands bitcoin holdings

Highlights

Strategy increased its bitcoin holdings to 848,250 BTC, valued at about $70.6 billion after a $21.5 million purchase at $86,194 per bitcoin.
Funding for the latest acquisition came from selling 125,183 MSTR shares for $21 million and using $0.5 million from USD Cash reserves, with $18.8 billion in MSTR shares still available for issuance.
Strategy’s bitcoin position results in about $6.6 billion in paper gains, and as of October 11, its USD Reserve and USD Cash balances were $4.88 billion and $640.5 million, respectively.

Funding details and treasury position

As reported by The Block, the latest purchase was made at an average price of $86,194 per bitcoin and was funded through proceeds from sales of Strategy's Class A common stock, MSTR, along with part of its USD Cash reserve.

The company says its total bitcoin position now stands at 848,250 BTC, valued at about $70.6 billion, with an average acquisition price of $75,444 per token and a total purchase cost of roughly $64 billion, including fees and expenses. The figures were shared by co-founder and executive chairman Michael Saylor.

Last week, Strategy sold 125,183 MSTR shares for about $21 million under its at-the-market equity program. As of October 11, about $18.8 billion of MSTR shares remains available for issuance and sale under that program, while the remaining $0.5 million for the latest bitcoin purchase came from the company's USD Cash holdings.

Balance sheet impact and market significance

At current prices, Strategy's bitcoin holdings imply about $6.6 billion in paper gains, underscoring the scale of the company's exposure to the cryptocurrency market.

The company also says it repurchased 1,932,145 million STRC preferred shares last week for about $192.4 million under its digital credit securities repurchase program. As of October 11, balances in its USD Reserve and USD Cash accounts stand at $4.88 billion and $640.5 million, respectively.

Our earlier coverage of Mall of Berlin’s capital-structure strain explained how lenders were seeking bids for about €550 million of debt while the owners simultaneously pursued a refinancing. We noted that testing investor demand across the debt stack can help creditors gauge pricing and preserve flexibility if a full or partial sale doesn’t go through.

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