Strategy Shares Dip Despite $835 Million Bitcoin Purchase—Its Largest in 4 Months
Strategy announced its largest Bitcoin purchase in over four months, acquiring $835 million worth of Bitcoin amidst a recent price drop. The firm now holds close to 650,000 Bitcoin, valued at around $61 billion. Despite the significant purchase, Strategy's shares fell by 1.5%, reflecting a 31% decline over the past month as the Bitcoin price declined from all-time highs. The company's new euro-denominated preferred shares have generated about $700 million, contributing to its Bitcoin acquisition strategy. Concerns regarding investor dilution and a potential debt spiral have emerged as Strategy's market capitalization is being perceived at a discount relative to its Bitcoin holdings. Analyst insights suggest that fears may be overstated, with no immediate risk of default due to manageable dividend obligations. The broader crypto market has also experienced downturns, fueling skepticism among investors about the future trajectory of Bitcoin prices. Market predictions indicate a prevailing sentiment leaning towards a potential price target of $85,000, reflecting diminished optimism in the crypto space.
Source 🔗