- Strategy increases its Bitcoin portfolio with its recent $980.3 million purchase.
- The company now holds 671,268 BTC, accounting for 3.36% of Bitcoin’s circulating supply.
- Bitwise backed Strategy amid MSCI’s proposal to exclude the business from its indexes.
Fresh from its $962.7 million Bitcoin (BTC) purchase announcement last week, Strategy (formerly MicroStrategy) has followed it up with another $980.3 million acquisition. Meanwhile, the company has been gaining support after news of its potential delisting from MSCI broke.
Strategy’s Latest Bitcoin Buy
According to Strategy, its latest acquisition brought in 10,465 BTC to its treasury. The figures translate to an average price of $92,098 per BTC.
The company executed its latest batch of Bitcoin transactions between December 8 and 14 while the premier crypto asset traded between a $94K high and an $87K low. It sourced the funds from the proceeds of the $989 million at the market (ATM) offerings of the MSTR Class A Common Stock ($888.2 million), 10.00% Series A Perpetual Strife (STRF) Preferred Stock ($18 million), 8% Series A Perpetual Strike (STRK) Preferred Stock ($600K), and 10% Series A Perpetual Stride (STRD) Preferred Stock ($82.2 million).
The move increases Strategy’s holdings to 671,268 BTC, making up 3.36% of the 19.96 million Bitcoin in circulation or 3.2% of the asset’s 21 million total supply. Additionally, it improves the business’s year-to-date (YTD) BTC yield from last week’s 24.7% to 24.9%, indicating its success in accumulating Bitcoin without diluting its equity.
Strategy has already invested $50.33 billion in Bitcoin, at an average purchase price of $74,972 per BTC.
Strategy’s MSCI Delisting
MSCI recently proposed removing from its Global Investable Market Indexes digital asset treasury (DAT) companies or institutions with over 50% of their total assets in digital assets. The rule change risks Strategy’s exclusion, which will likely impact its inflows and valuation. Securities.io estimates that the index can boost a company’s flow by up to 300% and contribute to around 2% to 3% increase in its price.
Strategy Executive Chairman Michael Saylor responded to the proposal, clarifying that DATs are operating companies, not investment funds. Moreover, he called out the MSCI’s decision as unworkable, discriminatory, and arbitrary.
Furthermore, Saylor argued that the MSCI’s rule revision improperly injects policy considerations into indexing and runs contrary to the USA’s digital asset-centric policy. Likewise, he claimed that its enforcement would stifle innovation. Hence, he asked the firm to revoke its proposal.
Bitwise backed Strategy’s arguments, explaining that indexes should operate on the grounds of neutrality. It noted that indexes should serve as “faithful reflections of the market” rather than favoring any specific business model.
The world’s largest crypto index fund manager and issuer of Bitcoin, Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and XRP exchange-traded funds (ETFs) in the US highlighted that Strategy plays a significant role in the modern economy. It primarily offers value to its shareholders in a way that ETFs cannot.
Bitwise believes MSCI’s proposal not only singles out DATs but also affects investors by removing their exposure to a fast-growing asset class and to a company that has positioned itself as a leader in the digital assets space.
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