Strategy Snaps Up More Bitcoin Amid BTC Price Drop

Bitcoin Treasury Strategy added 397 digital coins for about $45.6 million — an average price of $114,771 per coin — in one of its smallest purchases in recent months amid rocky price action last week and mixed reaction to its latest quarterly earnings.

The Nasdaq-listed company, formerly MicroStrategy, now owns it 641,205 BTC worth $69.1 billion at The current price of Bitcoin of $107,774.

Last week’s purchase was slightly larger than his first purchase of Bitcoin of $43 million. The week before, the company spent only $19 million on assets.

Strategy stock (MSTR) was trading 3.6% lower on Monday morning New York time at around $266 per share. In the past month, MSTR has fallen by 24%.

The software company’s earnings last week demonstrated which generated $2.8 billion in profits for its third quarter as it continued to aggressively buy the largest cryptocurrency by market capitalization. But analysts have highlighted its declining multiple to the net asset value (mNAV), the first at which the shares of a company trade in relation to its cryptocurrencies. The measure is seen as reflecting the ability of treasury companies to deliver on their strategies.

Strategy – formerly MicroStrategy –started shopping Bitcoin in August 2020 as a way to generate better returns for its shareholders since inflation has wreaked havoc on the US and world economies during the COVID-19 pandemic.

It has since spent about $47.4 billion on Bitcoin and is the largest corporate holder of the asset, focusing mostly on the security of the cryptocurrency. Investors can buy their shares to gain exposure to the leading cryptocurrency without having to buy and hold digital coins.

Since its first purchase, Strategy’s stock has risen more than 1,700%.

Other companies have followed Strategy’s approach, buying Bitcoin, ethereumand other digital currencies to boost their stock prices.

But some experts they warned of the strategy inherent riskand that might not be suitable for every company.

In a Myriad prediction market, 96% of respondents do not believe that the Strategy will sell more Bitcoin this year. Myriad is a unit of Dastan, Decrypt’s parent company.