Strategy Shares Dip Despite $835 Million Bitcoin Purchase—Its Largest in 4 Months
Strategy announced its largest Bitcoin purchase in over four months, spending $835 million as its share price fell. The firm now holds nearly 650,000 Bitcoin, worth around $61 billion. Despite this significant acquisition, Strategy's shares dropped 1.5% on Monday, reflecting concerns over a dilution of their stock as Bitcoin's price has retreated from its recent highs. The company has raised funds through various types of preferred shares in a bid to support its Bitcoin-buying activities. Michael Saylor, the Executive Chairman, affirmed the company's commitment to continue purchasing Bitcoin, even amid price declines. Strategy's market cap stands at about $56.7 billion, trading at a discount relative to its Bitcoin holdings. Despite scrutiny regarding its funding model, some analysts suggest fears about financial obligations are overstated, especially considering the lack of immediate debt maturities. The ongoing crypto market downturn has impacted Bitcoin prices significantly, leading to a bearish sentiment among many investors.
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