MSTR Announces $1.44 Billion USD Reserve As BTC Holdings Hit 650,000 Amid Investor Concerns

• Strategy’s cumulative Bitcoin holdings now total 650,000 acquired at an average purchase price of $74,436 per token.
• The announcement comes during heightened concern that Strategy could be forced to sell Bitcoin if the crypto market sell-off worsens.
• CEO Phong Le said MSTR would only be forced to sell Bitcoin if the stock trades below 1x mNAV and the company cannot raise equity or debt.

Michael Saylor-backed Strategy (MSTR) on Monday announced the formation of a $1.44 billion U.S. dollar reserve, and an increase in its Bitcoin (BTC) holdings to 650,000. 

In the past week, the company added 130 BTC at an average price of $89,960 per coin. The total Bitcoin holdings were acquired for $48.38 billion, reflecting an average purchase price of $74,436 per bitcoin. 

The announcement comes amid concerns that Strategy soon may be forced to sell some of its Bitcoin if the cryptocurrency market sell-off intensifies further and prices continue to fall. Strategy’s total Bitcoin holdings were acquired for $48.38 billion, reflecting an average purchase price of $74,436 per bitcoin. 

Conditions That Could Trigger Bitcoin Sale

CEO Phong Le outlined in a “What Bitcoin Did” podcast that Strategy could be forced to sell its core Bitcoin holdings under at least one set of circumstances. 

First, the company’s stock would need to trade below 1x mNAV, meaning its market capitalization falls beneath the value of its Bitcoin holdings. Second, Strategy must be unable to raise new capital through equity or debt, indicating capital markets are either closed or prohibitively expensive.

Bitcoin’s price was trading at around $86,000 in early morning trade, down more than 5% in the last 24 hours. On Stocktwits, retail sentiment around BTC dipped to ‘bearish’ from ‘neutral’ territory over the last 24 hours amid ‘low’ levels of chatter. 

Read also: BTC Price Rebounds After ETF Flows Turn Positive – Solana Outperforms While Binance Coin, Ethereum Slide

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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