MSTR stock surges today after Michael Saylor’s Strategy buys $1.25 billion worth of Bitcoin (BTC USD)

Strategy buys Bitcoin: Strategy stock saw a significant jump on Monday. The company announced a substantial purchase of Bitcoin, amounting to approximately $1.25 billion. This acquisition adds to Strategy's existing Bitcoin holdings, which are now...

Michael Saylor’s Strategy Bitcoin purchase

Strategy buys Bitcoin: Strategy stock (MSTR), formerly known as MicroStrategy, surged on Monday after the company disclosed that it purchased approximately $1.25 billion worth of Bitcoin, as per a report.

Strategy Stock (MSTR) Jumps After $1.25 Billion Bitcoin (BTC USD) Purchase

According to a regulatory filing with the US Securities and Exchange Commission, Strategy acquired 13,627 bitcoins between January 5 and January 11.

How Strategy Funded Its Latest Bitcoin Buy

The purchases were funded using proceeds from the sale of Variable Rate Series A Perpetual Stretch Preferred stock, as well as shares sold under the company’s at-the-market (ATM) offering program, as per a Stocktwits report.


Also read: Got laid off or fearing job loss? These hacks helped a sacked employee get hired in 6 weeks

Strategy’s BTC USD Holdings Now Worth About $62 Billion

As of January 11, Strategy held a total of 687,410 bitcoins, acquired for an aggregate purchase price of about $51.8 billion at an average cost of $75,353 per bitcoin. Based on the current bitcoin price, the company’s holdings are now valued at roughly $62 billion.

Michael Saylor’s “Big Orange” Hint Ahead of Disclosure

Earlier in the day, Strategy executive chairman and co-founder Michael Saylor hinted at the sizable purchase in a post on social media X, saying, “Big Orange.” Saylor has recently used “orange” and “green” signals on social media to indicate bitcoin purchases ahead of official disclosures, as per the Stocktwits report.
ADVERTISEMENT

The latest acquisition follows another Bitcoin purchase disclosed last week, when Strategy said it bought 1,286 bitcoins for approximately $116 million.

Also read: BitGo stock to hit NYSE: BitGo eyes $1.96 billion valuation, seeks $201 million in US IPO as crypto listings rebound

Growing Institutional Interest in Bitcoin ETFs

The rally also comes as interest in Bitcoin-related investments continues to grow. With easing regulation around digital currencies under US president Donald Trump’s administration, more firms have been increasing exposure to bitcoin through exchange-traded funds (ETFs). On Friday, Wells Fargo announced it had purchased $383 million worth of bitcoin ETFs.

Institutional participation through ETFs has helped support bitcoin prices, with major firms such as BlackRock offering their own bitcoin ETFs, launched in 2024.
ADVERTISEMENT

MSCI Keeps Digital Asset Treasury Firms in Its Indexes

Meanwhile, MSCI recently said it will continue to allow digital asset treasury (DAT) firms to remain included in its indexes. The index provider had previously proposed excluding crypto treasury companies from its global indexes. MSCI said the current index treatment of DAT companies, identified as those whose digital asset holdings represent 50% or more of total assets, will remain unchanged, a move seen as supportive for companies such as Strategy, one of the world’s largest DAT firms.

FAQs

Why did Strategy stock surge on Monday?
ADVERTISEMENT
Because the company revealed it bought about $1.25 billion worth of Bitcoin.

How much Bitcoin did Strategy buy this time?
Strategy purchased 13,627 bitcoins between January 5 and January 11.
Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App
for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
READ MORE
ADVERTISEMENT

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Business News › News › International › US News › MSTR stock surges today after Michael Saylor’s Strategy buys $1.25 billion worth of Bitcoin (BTC USD)
Text Size:AAA
Success
This article has been saved

*

+