Strategy resumes bitcoin shopping at a record price. Where did the company get the money from?

Strategy, the largest corporate holder of bitcoin, has bought up the cryptocurrency, boosting its reserves to more than $73 billion after months of declining purchases. Although interest in cryptocurrencies has waned recently, Strategy still has a significant competitive advantage, according to Benchmark Equity Research.

Strategy reported acquiring another 220 bitcoins for a total of $27 million, at an average of $123,600 per coin. This is the highest price the company has ever paid for a bitcoin, Bloomberg writes . Strategy's total reserves now total 640.25 thousand tokens, or 3% of all tokens in circulation.

Although the cryptocurrency treasury model has been losing popularity recently, Strategy has an edge over its competitors thanks to its focus on bitcoin-linked fixed-income instruments, according to Benchmark Equity Research analyst Mark Palmer. In 2025, Strategy issued several series of preferred shares - under the tickers STRK, STRF, STRD and STRC - that have the characteristics of both equities and debt securities: they have no maturity date (like equities), but their dividends are fixed (like coupon income on bonds), CoinDesk notes.

On Aug. 28, Strategy reported that it has offered $5.6 billion worth of preferred stock since the beginning of 2025, which is 12% of all public offerings in the U.S., according to the company. This provides capital for further bitcoin purchases, and it does not need to make additional issues of common securities, thereby diluting their value, Palmer emphasized.

Strategy's shares are also supported by recent changes in U.S. law - they will allow the company to avoid paying taxes on profits it made on bitcoin gains if those coins were not sold. The new tax rule removes a "significant source" of potential pressure on Strategy's quotes, according to TD Cowen analyst Lance Vitanza.

Earlier this week, major cryptocurrencies recovered some of their losses after traders staged the largest sell-off in the history of the crypto market on Oct. 10, liquidating $19 billion worth of positions. The recovery suggests that the liquidation of positions was driven more by liquidity concerns than fundamentals, LMAX Group strategist Joel Krueger told MarketWatch. He warned that he doesn't think the situation in the crypto market is sustainable: "While investors seem willing to ignore the current turmoil, their confidence could be tested again if external shocks resume."

The new collapse was not long in coming: in the morning of October 14 in London, bitcoin collapsed by 3.75%, Ethereum - by 7.5%. Smaller and more volatile tokens fell even harder, resulting in the total market value of cryptocurrencies falling by more than $150 billion in 24 hours, Bloomberg reported, citing data from CoinGecko. The agency attributed the sell-off in the digital asset markets to the market's negative reaction to Beijing's imposition of sanctions against the U.S. units of Hanwha Ocean, one of South Korea's largest shipbuilders, in response to U.S. measures against the Chinese shipping sector.

This article was AI-translated and verified by a human editor