Strategy Makes $835 Million Bitcoin Bet, Largest Since July

Core Insights - Michael Saylor reaffirmed his commitment to the digital-asset treasury model during a recent downturn in the crypto market [1] Company Summary - Strategy Inc. purchased $835.6 million in Bitcoin over a week, marking its largest acquisition since July, bringing total holdings to 649,870 tokens valued at approximately $61.7 billion [2] - The company financed most of its Bitcoin purchases through proceeds from a euro-denominated preferred offering that closed last week [2] - Since initiating Bitcoin purchases in August 2020, Strategy's stock has surged over 1,500%, although it has declined about 57% from its all-time high of $473.83 on November 20, 2024 [6][7] Market Dynamics - Bitcoin has dropped nearly 30% from its early-October peak, undermining expectations of increased Wall Street involvement and the rise of mainstream ETFs [3] - Retail traders have been hesitant to re-enter the market due to previous downturns, leading to reduced liquidity [3] - The recent price drop has brought firms like Strategy closer to the value of their Bitcoin reserves, highlighting the volatility and risk associated with digital-asset treasury companies [4] Valuation Metrics - Strategy's mNAV, a key valuation metric, has plummeted from above 2.5 to just 1.2, indicating a significant reduction in the premium that previously attracted momentum investors [5]