Strategy Adds 1,142 BTC as $54B Bitcoin Bet Sits $5B Underwater
Michael Saylor’s firm ignores a $5 billion paper loss to acquire another 1,142 BTC at $78k, funding the buy with fresh equity dilution.
Strategy (NASDAQ: MSTR) has purchased an additional 1,142 Bitcoin for approximately $90 million, defying a deepening market rout that has pushed the company’s massive cryptocurrency treasury nearly $5 billion into the red.
The Receipt
According to a Form 8-K filing released Monday morning, the Michael Saylor-led firm acquired the coins between February 2 and February 8 at an average price of $78,815 per Bitcoin. The purchase was funded through the sale of 616,715 shares of class A common stock.
This latest tranche brings Strategy’s total holdings to 714,644 BTC. Roughly 3.4% of the total circulating supply. The company’s aggregate cost basis now stands at $54.35 billion, with an average entry price of $76,056 per coin.
The Discrepancy
With Bitcoin trading at $69,170 (-3.1%) at press time, Strategy’s average cost is now significantly above the spot price. The company is sitting on an unrealized loss of approximately $4.97 billion, a sharp reversal from the profit cushion it enjoyed earlier in the year.
Despite the drawdown, Saylor signaled the purchase Sunday with a post on X, noting “Orange Dots Matter.” The move reinforces a thesis of absolute price insensitivity, even as on-chain data suggests the $78,815 purchase price was near the local top before last week’s capitulation event.
Market Reaction
Markets punished the dilution-for-accumulation mechanic. Strategy shares (MSTR) slid to $133.77 in early trading, underperforming Bitcoin’s own decline. The company has now issued nearly $90 million in new equity to buy an asset that immediately depreciated by 12% against the purchase price.
