Breaking: Michael Saylor’s Strategy Adds 2,486 BTC Amid Institutional Concerns Over Quantum Threat To Bitcoin

Boluwatife Adeyemi
2 hours ago Updated 2 minutes ago
Boluwatife Adeyemi is a well-experienced crypto news writer and editor with a focus on macro topics, crypto policy and regulation and the intersection between DeFi and TradFi. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.
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an image of Michael Saylor and the Strategy logo

Highlights

  • Strategy bought 2,486 Bitcoin between February 9 and 15.
  • This marks the eighth consecutive weekly Bitcoin purchase.
  • The MSTR stock is down over 4%.

Michael Saylor’s Strategy, previously MicroStrategy, has announced its eighth consecutive weekly Bitcoin purchase, with the company now just one more purchase away from hitting its 100th BTC purchase milestone. This latest purchase comes as investors raise concerns over the threat of quantum computing to BTC, although Saylor’s company is also notably making plans to combat this threat.

Strategy Acquires 2,486 BTC for $168.4 Million

An SEC filing shows that the company acquired 2,486 BTC for $168.4 million, at an average price of $67,710 per BTC. They now hold 717,131 BTC, which they acquired for $54.52 billion at an average price of $76,027 per Bitcoin.

The filing shows that Strategy funded this latest purchase using proceeds from MSTR and STRC stock sales. It sold 660,000 MSTR and 785,354 STRC shares, raising net proceeds of $90.5 million and $78.4 million, respectively.

Strategy SEC Filing
Source: Strategy SEC Filing

As CoinGape reported, Saylor had teased about the Bitcoin purchase in his conventional Sunday X post, with the caption, “99>98,” signaling that this latest purchase was larger than last week’s. It is worth noting that this is Strategy’s 99th BTC purchase, since they adopted the leading crypto for their reserves in 2020.

Furthermore, this marks the company’s eighth consecutive weekly Bitcoin purchase, dating back to December last year. The purchase comes as institutional investors raise concerns over the threat of quantum computing to Bitcoin.

CoinGape reported earlier today that Kevin O’Leary warned of a potential Bitcoin crash due to concerns about the quantum threat to BTC. He noted that these institutions are currently hesitating due to this threat and that he doesn’t expect them to exceed a 3% allocation until the threat is resolved.

Notably, during last week’s earnings call, Strategy announced that they had launched a Bitcoin Security Program to address quantum computing threats. However, Saylor noted that this threat is still likely years away.

MSTR Stock Slides Over 4%

Meanwhile, the MSTR stock is down amid this latest Bitcoin purchase. Yahoo Finance data show the stock is trading at around $127, down over 4% from last week’s close of $134. MSTR is also down over 16% year-to-date (YTD). The latest decline comes as BTC continues to struggle, falling below $67,000 today.

MSTR Daily Chart
Source: Yahoo Finance; MSTR Daily Chart

The Strategy stock also continues to face selling pressure, especially with the company sitting on an unrealized loss of around $5.6 billion on its investment. The unrealized losses have repeatedly prompted speculation that Sayor’s company will offload these coins at some point, especially to meet its debt obligations. However, Saylor has assured that Strategy can cover its debt even if Bitcoin crashes to $8,000.

Meanwhile, TD Cowen analysts have predicted that the MSTR stock can still rally to as high as $440, noting that Strategy is well-positioned to benefit from a Bitcoin recovery. Institutional investors, including Charles Schwab, continue to accumulate MSTR shares despite the current downtrend. Charles Schwab notably holds 1.27 million shares, valued at around $168 million.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

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About Author
About Author
Boluwatife Adeyemi is a well-experienced crypto news writer and editor with a focus on macro topics, crypto policy and regulation and the intersection between DeFi and TradFi. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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