BTC Price Keeps Dropping Despite Strategy’s Latest $2B Bitcoin Purchase

Just a few hours after announcing the successful completion of a $2 billion offering of convertible notes, Strategy (formerly MicroStrategy) said it had purchased BTC for the exact same amount.

Thus, its total bitcoin stash has grown to over 499,000 BTC.

The latest acquisition, announced by co-founder and former CEO Michael Saylor, saw the accumulation of 20,356 BTC at an average price of $97,514. The largest corporate bitcoin holder now owns 499,096 BTC, acquired for $33.1 billion.

Given the cryptocurrency’s current value, Strategy’s holdings are now valued at $47.4 billion, putting the company in a $14 billion paper gain situation.

This purchase was announced shortly after the company said it had raised $2 billion by offering convertible notes at 0% coupon and 35% premium, with an implied MSTR strike price of $433.43.

Alongside the crypto market, the firm’s shares have been in a nosedive state, losing over 12% in the past five days. They are down by 16.5% since this time last month but up by 105% on a 6-month scale and now trade inches below $300.

BTC’s price also struggles to gain any traction. It dropped below $96,000 earlier today and is now close to breaking beneath $95,000 for the first time since last week’s crash.