(Bloomberg) — Michael Saylor doubled down on the digital-asset treasury model that he pioneered during last week’s crypto market rout.

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Strategy Inc. revealed it bought $835.6 million in Bitcoin in the seven days ended Sunday, the largest purchase of the original cryptocurrency by the firm since July. That brought its total holdings to 649,870 tokens worth roughly $61.7 billion, according to a filing Monday with the US Securities and Exchange Commission. The company appeared to finance the majority of the purchases with the proceeds of an euro-denominated preferred offering that closed last week.

Bitcoin has fallen almost 30% from its early-October high, undercutting expectations that deeper Wall Street involvement, friendlier signals from Washington and the rise of mainstream ETFs would steady the market. Retail traders, burned in earlier downturns, have been reluctant to wade back in, while liquidity has thinned. The pressure has been even sharper on digital-asset treasury companies, whose shares rise and fall with the tokens they hold.

The latest drop pushed firms like Strategy closer to the value of their Bitcoin reserves, revealing how quickly these stocks can behave like leveraged bets with limited protection on the downside. That dynamic has made dip-buying a more fraught choice, turning Strategy’s disclosure into a test of how much conviction remains among larger, institutional players.

Strategy’s mNAV — a key valuation metric comparing the firm’s market capitalization to the value of its Bitcoin holdings — has collapsed from above 2.5 to just 1.2. The premium that once made Strategy a high-beta proxy for Bitcoin is now too thin to lure in the same momentum-chasing crowd — weakening the very loop that once inflated it.    

Since the company announced that it started purchasing Bitcoin in August 2020, the stock has increased by over 1,500% The S&P 500 index more than doubled during the same period. The stock is down about 57% since reaching an all-time high of $473.83 on Nov. 20, 2024.  It was little changed on Monday.

Saylor, the co-founder and chairman of Strategy, had initially fund the company’s Bitcoin purchases through the sale of common shares. The firm later began to issue convertible, and eventually preferred shares as the premium of the common stock eroded amid investor concerns of dilution. It recently tapped European markets to raise capital.