Michael Saylor, the co-founder of the Bitcoin treasury firm Strategy, has indicated that the company is continuing its Bitcoin acquisitions despite a downturn in the market. This marks the twelfth consecutive week of Bitcoin purchases by the company as it navigates a significant decline in its stock value.
Saylor shared a chart on the X social media platform, illustrating Strategy’s ongoing Bitcoin accumulation. The company is approaching its 99th Bitcoin transaction, having recently purchased 1,142 BTC for over $90 million on February 9th. This acquisition increased Strategy's total Bitcoin holdings to 714,644 BTC, which were valued at approximately $49.3 billion at the time of reporting.
Despite a flash crash in October that led to a more than 50% decrease in Bitcoin's price from its all-time high of over $125,000, Strategy has persisted in its purchasing strategy. The average acquisition cost for the company stands at $76,000 per Bitcoin, a figure that is now below current market prices.
This steadfast approach comes even as the broader crypto treasury sector faces challenges, with several companies experiencing sharp stock price declines and an erosion of their multiple on net asset value (mNAV). Strategy's mNAV has fallen to 0.90, signaling potential challenges, as a value below 1 suggests the market values the company less than its actual asset holdings.
Despite reporting a Q4 loss of $12.4 billion, which initially caused a 17% drop in Strategy's stock price, recent trading sessions have seen some recovery, with shares closing at $133.88.
The company’s commitment to Bitcoin acquisitions contrasts with analyst predictions that Strategy might sell off its Bitcoin reserves or halt purchases during such market conditions. Saylor’s continued investments reflect a strong belief in Bitcoin's long-term value, positioning Strategy as a significant player in the crypto investment landscape.