Strategy Shares Dip Despite $835 Million Bitcoin Purchase—Its Largest in 4 Months

Strategy has made its largest Bitcoin purchase in over four months, acquiring $835 million worth of Bitcoin while its price has recently dropped. The firm now owns nearly 650,000 Bitcoin, valued at approximately $61 billion, with Bitcoin trading around $94,000, marking an 11% decline within a week. The recent Bitcoin purchase aligns with the launch of its euro-denominated preferred shares, yielding approximately $700 million in net proceeds for the company. Despite this substantial investment, Strategy's shares fell 1.5% on the day, reflecting a 31% decrease over the past month, primarily due to investor concerns over dilution. Michael Saylor, Executive Chairman, emphasized the company’s commitment to increasing Bitcoin holdings, continuing to buy daily amid price drops. Analysts argue that fears of a debt spiral are likely overblown, as the firm’s bonds do not mature until 2028 and preferred shareholders have no legal claim to dividends, thus managing the financial risks. Amid broader market downturns, Bitcoin dipped to as low as $93,029 over the weekend, but has seen a slight recovery.

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