Michael Saylor’s Latest Bitcoin Investment Strategy: A $51 Million Addition
The company has revised its previous guidance to enable the issuance of fresh shares even when the stock trades below 2.5x mNAV.
What to know:
- Strategy (MSTR) added 430 bitcoin for $51.4 million last week.
- Its total assets now total 629,376 coins valued at approximately $72 billion, following a price drop of bitcoin to $115,000.
- The updated ATM equity guidance allows for issuance of common stock below 2.5x mNAV when advantageous.
Investment Insights
Strategy (MSTR) — the pioneer in holding bitcoin for treasury purposes — acquired an additional 430 bitcoins recently. Led by Executive Chairman Michael Saylor, the firm executed these acquisitions at an average cost of $119,666 each, totaling $51.4 million.
Currently, Strategy holds 629,376 bitcoin, averaging $73,320 per coin. Following significant market volatility, bitcoin’s price is now around $115,000, thereby giving MSTR’s holdings an estimated value of about $72 billion.
Saylor has also indicated that the company is changing its equity issuance policy. It had previously stated it would refrain from issuing shares if trading values fell below 2.5x mNAV, a decision aimed at alleviating shareholder dilution concerns. With the new flexibility, equity can be issued below this threshold when considered beneficial for the firm.
MSTR shares experienced a decline of 2.2% in the premarket and have decreased over 10% in the past week, yet they are still up approximately 20% year-to-date.
