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Strategy Acquires Bitcoin Worth $962 Million Before Price Drop

Strategy Acquires Bitcoin Worth $962 Million Before Price Drop

Just before the decline in digital gold prices, Strategy acquired 10,624 BTC for $962.7 million, with an average price of $92,098 per coin.

The firm’s total balance has reached 660,624 BTC, valued at approximately $60 billion.

Meanwhile, Strategy retained its position in the Nasdaq 100 index following the annual rebalancing, reports Reuters. This marks the first successful review for the company since its inclusion in the benchmark last December.

During the rebalancing, Biogen, CDW, GlobalFoundries, Lululemon, On Semiconductor, and Trade Desk exited the Nasdaq 100. They were replaced by Alnylam Pharmaceuticals, Ferrovial, Insmed, Monolithic Power Systems, Seagate, and Western Digital.

Risks from MSCI

In January, Strategy may face exclusion from MSCI provider indices. The organization is reviewing the classification of companies whose assets consist of more than 50% digital currencies.

JPMorgan analysts warned that if MSCI changes the rules, passive funds will be forced to sell Strategy shares worth up to $2.8 billion.

The company’s management disagrees with this approach. Executive Chairman Michael Saylor and CEO Phong Le sent a letter to MSCI. They insist that Strategy is an operational enterprise, not a passive bitcoin holder. To finance purchases, the firm actively issues preferred shares and other instruments.

BitMine Increases Ethereum Holdings to 3.97 Million Coins

BitMine reported an increase in Ethereum reserves to $13.2 billion. The firm holds 3.97 million ETH, more than 3.2% of the market supply of the second-largest cryptocurrency by capitalization.

As of December 14, the company’s asset structure includes:

BitMine Chairman Tom Lee stated that the company acquired 102,259 ETH just last week. According to him, the stabilization of prices indicates the beginning of market recovery after the price shock on October 10.

“Positive changes in US legislation and support from Wall Street strengthen our confidence in digital assets,” said Lee.

BitMine remains the world’s largest corporate holder of Ethereum. In the overall ranking of public companies with crypto treasuries, the firm ranks second, behind Strategy.

Earlier in December, Saylor’s company increased its holdings of the leading cryptocurrency by purchasing 10,624 BTC for ~$962.7 million.

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