Strategy has resumed buying Bitcoin, adding 950 coins this week after acquiring 4,603 at the end of August, taking its total holdings to 846,000 Bitcoin. The purchases coincide with Bitcoin's climb toward $86,000 and a rally that has more than doubled Strategy's stock from its late-June lows.
Strategy resumes buying as Bitcoin nears $86,000
Strategy acquired 950 Bitcoin this week and 4,603 Bitcoin at the end of August, bringing its total holdings to 846,000 Bitcoin and confirming its position as the largest corporate holder of the cryptocurrency. The latest 950-coin purchase cost approximately $75.7m, funded from the company's existing dollar cash rather than a new share sale.
Bitcoin itself has been climbing, trading around $86,000 on Tuesday. It had reached $87,402.32 on 21 September, its highest level since January. Strategy's stock has followed, surging more than 40% in the past month. It has more than doubled from its late-June lows.
Stock's swings outpace Bitcoin's own moves
Strategy and Bitcoin are highly correlated, but the stock's gains and losses tend to be more extreme than the cryptocurrency's. Strategy gained 9% on 21 September after rising 16% the previous trading session, even as Bitcoin itself moved by a much smaller amount that day.
That amplified swing comes from leverage built into Strategy's capital structure: shareholders are exposed to the residual value of its Bitcoin holdings after debt and preferred-stock obligations are accounted for. Strategy's own data puts annualised 30-day historical volatility at more than 100%, compared with about 81% over one year.
A stronger balance sheet backs the rally
Strategy's most recent quarter, ended June 30, showed an unrealized loss on digital assets of more than $8.3 billion against revenue of just $122 million, underscoring how heavily its earnings hinge on Bitcoin's price. Yet its liquidity has since improved: as of 20 September, Strategy reported a USD Reserve of $5.04bn and USD Cash of $1.05bn, against $6.7bn of debt and $14.3bn of preferred stock outstanding.
The company's total Bitcoin position, now around 4% of Bitcoin's fixed 21 million supply, according to Strategy's own data, was acquired for approximately $63.8bn at an average price of $75,416 per coin. Strategy remains a highly speculative, volatile stock whose rally could reverse just as quickly if Bitcoin's advance stalls.
Sources: The Motley Fool, IG
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