Key Takeaways
How much Bitcoin does Strategy currently own in total?
Strategy owns 640,808 BTC worth approximately $47.44 billion, with an average purchase price of $74,032 per Bitcoin.
How did analysts react to the rating?
Analysts argued that the rating unfairly treats Bitcoin as a liability and discourages Bitcoin adoption by companies.
Strategy (formerly MicroStrategy), led by Bitcoin [BTC] advocate Michael Saylor, has added to his already massive Bitcoin portfolio with a new strategic purchase.
Saylor’s strategy adds more Bitcoin
The company bought 390 BTC worth approximately $43 million at an average price of $114,562 per coin, cementing its status as the world’s largest corporate holder of the cryptocurrency.
With this addition, Strategy’s total Bitcoin reserves increased to 640,808 BTC, worth approximately $47.44 billion, purchased at an average cost of $74,032 per coin.
Just a day before the announcement, Saylor dropped his signature hint on X, posting Strategy’s Bitcoin portfolio tracker with the caption: “It’s Orange Dot Day.”
Source: Michael Saylor/X
MSTR stock performance and S&P Global rating
Following the announcement, shares of Strategy (MSTR) reacted positively.
At the time of writing, MSTR was trading at $295.63, up 2.27% from the previous session, based on Google Finance data. Still, despite the brief rise, the company’s shares remained down 4.8% from $314 in the past month.
This coincided with S&P Global assign Strategy earlier this week for a B rating, putting the company firmly in non-investment-grade territory, also known as “junk” status.
For context, the lowest investment-grade rating on the S&P scale is BBB.
The S&P report acknowledged that most of Strategy’s balance sheet is concentrated in Bitcoin and predicted that the company will continue to significantly expand its holdings. This, the report said, reinforces its view that Strategy’s capital structure remains “weak.”
Despite the criticism, however, the cut appears to have done little to advance Saylor’s long-term vision.
Adam Livingston weighs in
Echoing Saylor’s sentiment, Livingston, a market analyst and proponent of Saylor’s Bitcoin Strategy, argued that the rating unfairly penalized Strategy for adopting Bitcoin as its main treasury asset.
He claimed that S&P’s assessment “misrepresents Bitcoin as a liability rather than an asset,” effectively discouraging corporate adoption of Bitcoin.
If the company’s reserves were instead made up of U.S. Treasury bonds, he said, the agency would have labeled them as “high quality capital.”
Source: Adam Livingston/X
Bitcoin price action and more
Meanwhile, BTC was trading at $114,236.48, down 1.48% in the past 24 hours, according to CoinMarketCap.
With Bitcoin volatility at an all-time low and institutional demand cooling, the Strategy’s ability to leverage debt and equity for further accumulation could be tested.