Bitcoin bull Michael Saylor’s Strategy has doubled down on its long-standing conviction, announcing another massive Bitcoin buy worth nearly $1 billion.
Key Takeaways:
- Strategy bought $980 million in Bitcoin, increasing its holdings to 671,268 BTC.
- The purchase was funded through stock sales
- The purchase comes after Strategy created a $1.44 billion cash reserve to avoid selling Bitcoin, ensuring dividend and debt payments during market volatility.
In a Form 8-K filing dated December 15, Strategy disclosed that it acquired 10,645 BTC between December 8 and December 14, spending $980.3 million at an average price of $92,098 per coin.
The purchase was funded through proceeds raised under the firm’s at-the-market (ATM) equity and preferred stock offerings, including sales of common shares and multiple preferred stock classes.
Strategy Becomes World’s Largest Corporate Bitcoin Holder With 671,268 BTC
Following the latest acquisition, Strategy’s total Bitcoin holdings climbed to 671,268 BTC, with an aggregate purchase cost of $50.33 billion and an average price of $74,972 per Bitcoin.
The move further cements the company’s position as the largest corporate holder of Bitcoin globally, far ahead of other public firms.
Last week, Strategy also purchased 10,624 BTC for roughly $962.7 million, paying an average price of $90,615 per coin.
The new purchases come as Strategy has built a $1.44 billion reserve to cover dividend and debt interest payments in cash, avoiding the need to sell any of its extensive Bitcoin holdings during periods of high market volatility.
CEO Phong Le has said the company’s newly built cash reserve is designed to quiet investor anxiety over its ability to withstand a sharp downturn in Bitcoin.
Le said the move followed weeks of speculation about whether the firm could continue meeting its dividend and debt commitments if market conditions worsened.
“We’re very much a part of the crypto ecosystem and Bitcoin ecosystem,” Le said. “Which is why we decided a couple of weeks ago to start raising capital and putting US dollars on our balance sheet to get rid of this FUD.”
The reserve, funded via a stock sale, is intended to secure at least 12 months of dividend payments, with plans to stretch that buffer to 24 months.
Concerns over Strategy’s dividend stability had grown louder in recent weeks as Bitcoin retreated from its highs.
Bitcoin Drops Under $90,000 as Investors Turn Defensive
Bitcoin slipped below the $90,000 mark this week, reinforcing a cautious short-term outlook as investors pull back from risk assets, according to Lin Tran, senior market analyst at XS.com.
In a note shared with Cryptonews, Tran said Bitcoin continues to trade in line with broader risk sentiment, remaining closely tied to US technology stocks and shifting expectations around monetary policy.
The analyst noted that Bitcoin’s rejection near $100,000 and its struggle to hold above the psychological $90,000 level point to growing risk aversion, particularly as markets head into year-end.
Investors appear focused on protecting gains after the strong rally earlier in the cycle.
Tran highlighted US Federal Reserve policy as the key macro driver.
While interest rates have been cut, the Fed’s cautious guidance and still-elevated real rates have limited the return of global liquidity, capping Bitcoin’s upside.
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