Strategy Buys $21.5M More Bitcoin, Now Holds 848,250 BTC

Strategy bought 250 more bitcoins and now holds $70.2 billion worth. Its stock rose 2% as weekly buying resumes.

A company called Strategy just bought even more Bitcoin — and it already owns a mountain of it.

Strategy (formerly known as MicroStrategy) is a company listed on the Nasdaq (a major U.S. stock exchange where tech companies trade). Instead of just running a normal business, it has become famous for one thing: buying and holding huge amounts of Bitcoin. A company that does this is called a bitcoin treasury.

According to a filing (an official report companies must share publicly), Strategy made these moves:

Spent $21.5 million to buy 250 bitcoins between October 5 and October 11
Spent $192.4 million buying back its own STRC preferred stock (a special type of share that usually pays a fixed, steady payment to its owners)
Now holds a total of 848,250 bitcoins, worth about $70.2 billion today

How did they pay for it? Strategy keeps two pots of cash. One, the "USD Reserve," pays owed money like dividends (regular payments to shareholders) and interest on debt. The other, "USD Cash," is used specifically to buy Bitcoin. This latest purchase came from selling some MSTR stock and dipping into that cash buffer.

Why does Strategy do this? It started buying Bitcoin in 2020 to protect shareholders from inflation (when money loses value over time and prices rise). Since then, the company has gone all-in, becoming a way for everyday investors to get exposure to Bitcoin without buying the coins directly.

What about the stock? Here's the mixed picture:

MSTR stock is down over 50% in the past year, as Bitcoin's price dropped
But since Strategy began buying Bitcoin in August 2020, the stock has climbed nearly 1,000%

On Monday, the stock traded about 2% higher. After months of pausing or buying only occasionally, Strategy is now back to buying Bitcoin almost every week.

Bottom line: Strategy continues its bold, high-risk strategy of betting big on Bitcoin — a plan that has paid off hugely over five years but comes with wild ups and downs.

This is an AI-generated summary. Read the original article at: https://bitcoinmagazine.com/news/strategy-smash-buys-21-5m-in-bitcoin