- Bitcoin development company Strategy purchased $1.25 billion in BTC last week, bringing its portfolio to 687,410 BTC.
- Strategy stands to gain from an impending dollar crash amid a looming crisis at the Fed.
Strategy (MSTR) executed another batch of Bitcoin (BTC) purchases from January 5 to 11. According to its Form 8-K filing with the US Securities and Exchange Commission (SEC) on Monday, it netted 13,627 BTC during the period, totaling $1.2471 billion.
Updates on Strategy’s Bitcoin Holdings
The buys averaged $91,519 per BTC, when Bitcoin traded between a $94K high and an $89K low. The company raised funds for the acquisition through its Variable Rate Series A Perpetual Stretch (STRC) Preferred Stock and MSTR Class A Common Stock offerings in the same timeframe.
The move increases Strategy’s digital asset treasury (DAT) to 687,410 BTC. So far, it has already allocated $51.80 billion to build its haul, reflecting a dollar-cost average of $75,353 per BTC. This was a slight increase from its $75,011.50 per BTC average purchase price based on its disclosure last week.
Strategy Still Trades at a Premium Despite Constant Warning from Critics
Despite negative comments intended to generate FUD (Fear, Uncertainty, Doubt) about the business, given its annual return of -51%, Strategy has maintained a Market-adjusted Net Asset Value (mNAV) of 1.04. The figures indicate that MSTR shares continue to trade at a premium relative to its Bitcoin assets.
Strategy notably has $8.244 billion in debts and pays $844 million in annual dividends to investors. Moreover, it has a net leverage of 10%, indicating its ability to service its debt relative to its cash flow.
As an additional safeguard for its payments to shareholders, the company has allocated a $2.25 billion reserve to help settle its financial obligations during market volatility. The amount enables it to cover 32 months of dividends without selling any of its Bitcoin holdings or diluting its shares.
Fed Crisis and US Dollar Crash Potentially Triggering Bitcoin’s Rally
Strategy’s investment decisions are driven by Executive Chairman Michael Saylor’s permabull viewpoint on Bitcoin. The recent forecast of Robin Brooks, Senior Fellow at The Brooklins Institution and former Chief FX Strategist—Managing Director at Goldman Sachs, somehow justifies Strategy’s ongoing bullish sentiment on BTC.
The economist warned investors on Monday via a post on X that the US dollar is in danger of falling amid the current crisis at the US Federal Reserve. He explained that the currency has been in a holding pattern since US President Donald Trump imposed aggressive tariffs on trade partners, especially China, in April last year.
Brooks cautioned about a deeply unsettled equilibrium, masked by what appears to be a calm surface for the US dollar. He said that Trump’s continuous assault on the integrity of the US central bank, intended to pressure it to cut rates, could backfire into a full-blown crisis.
Forbes noted that Bitcoin holders stand to benefit from this scenario, as it could catalyze a price boom for the premier crypto asset. It claimed that investors are already placing their bets on this probability.
Disclaimer: The analysis and commentary featured in this article are only for informational purposes. They do not constitute financial advice or a product recommendation from the author or the Blockzeit team.
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