Treasury giant adds 2,486 BTC to reserves as holdings exceed 717,000 tokens
MicroStrategy has once again demonstrated its unwavering commitment to Bitcoin accumulation, announcing the acquisition of 2,486 BTC worth approximately $168 million. The purchase, executed at an average price of $67,710 per token, occurred between February 9th and 16th, funded through proceeds from the company’s MSTR and convertible note at-the-market stock offerings.
The announcement, shared by co-founder and executive chairman Michael Saylor via social media, came on a Tuesday rather than the company’s typical Monday disclosure schedule. This timing shift was attributed to the Presidents’ Day federal holiday, which fell on the previous Monday.
Portfolio Reaches New Milestone Despite Underwater Position
With this latest acquisition, MicroStrategy’s Bitcoin treasury has swelled to 717,131 BTC, representing one of the largest corporate cryptocurrency holdings globally. The company has invested a total of $54.52 billion in building this position, establishing an average cost basis of $76,027 per Bitcoin.
However, current market conditions have placed the entire portfolio in an unrealized loss position. At Bitcoin’s current trading level of approximately $67,700, the total value of MicroStrategy’s holdings stands at $48.66 billion, creating a net unrealized loss exceeding 10.7% or roughly $5.86 billion.
Strategic Resilience in Market Volatility
Despite the significant paper losses, MicroStrategy appears undeterred in its Bitcoin accumulation strategy. The recent market downturn, particularly since late January, has pushed Bitcoin prices below the company’s cost basis, yet management continues to view these conditions as buying opportunities rather than reasons for concern.
In a weekend social media post, the company demonstrated confidence in its financial position, stating it could withstand a Bitcoin drawdown to $8,000 while maintaining sufficient assets to cover all debt obligations. “Our plan is to equitize our convertible debt over the next 3–6 years,” Saylor noted, indicating a long-term strategic approach to debt management.
Systematic Accumulation Approach
This latest purchase marks MicroStrategy’s 99th Bitcoin acquisition since adopting its Bitcoin treasury strategy in 2020. Saylor’s routine social media posts have become a closely watched indicator for Bitcoin investors, with his recent “99>98” caption alongside the company’s BTC portfolio tracker serving as a teaser for the upcoming announcement.
The systematic nature of these purchases has established MicroStrategy as a bellwether for institutional Bitcoin adoption, with each acquisition closely monitored by market participants and analysts seeking insights into corporate cryptocurrency strategies.
Broader Institutional Crypto Activity
MicroStrategy’s continued accumulation coincides with similar moves by other institutional players in the cryptocurrency space. BitMine, the largest Ethereum treasury company, recently announced the purchase of 45,759 ETH, bringing its total holdings to 4,371,497 ETH, equivalent to 3.62% of Ethereum’s total circulating supply.
“In our view, the price of ETH is not reflective of the high utility of ETH and its role as the future of finance,” commented BitMine chairman Tom Lee, echoing the sentiment shared by many institutional cryptocurrency advocates who view current market conditions as attractive entry points.
Market Outlook
Bitcoin continues to trade around $67,700, reflecting a nearly 2% decline over the past seven days. The cryptocurrency’s recent performance has tested the resolve of institutional holders, with companies like MicroStrategy facing scrutiny over their aggressive accumulation strategies amid market volatility.
As institutional adoption of cryptocurrency continues to evolve, MicroStrategy’s approach serves as a case study for corporate treasury management in the digital asset era, with its outcomes likely to influence future institutional cryptocurrency strategies across various sectors.