CMC News

$BTC Treasury Giant Strategy Buys $100M More #Bitcoin Despite Stock Drop

#MichaelSaylor's Strategy acquired 850 $BTC for approximately $100 million last week at an average price of $117,344 per coin. The purchase brings the company's total Bitcoin holdings to 639,835 $BTC valued at roughly $72.25 billion, representing over 3% of Bitcoin's total supply.

#Strategy (formerly known as MicroStrategy) shares traded down 1.4% on Monday despite the acquisition announcement. The stock has underperformed $BTC itself over the past month, declining 5.2% compared to Bitcoin's 1.6% drop during the same period.

The latest purchase utilized $19 million from Strategy's STRF preferred stock offering proceeds and over $80 million from its $21 billion common stock program. The company maintains approximately $16 billion available for issuance in its common stock offering, plus over $30 billion across four preferred stock programs.

TD Cowen analysts maintain a buy rating with a $620 price target, representing an 83.4% upside from current levels. They cited management's view that common stock remains undervalued relative to $BTC price and highlighted potential catalysts, including S&P 500 inclusion.

Strategy's buying pace has generally slowed in recent weeks as focus shifted from common stock to preferred equity offerings. The company acquired 3,330 Bitcoin in September, down from 7,714 $BTC in August and significantly below July's 31,466 $BTC.