Strategy has acquired $110.2 million worth of Bitcoin as the price trades near its all-time high level.
According to a June 9 US Securities and Exchange filing, Streategy acquired 1,045 Bitcoin (BTC) at an average price of $105,426 per coin. The company now holds 582,000 BTC acquired for approximately $40.79 billion at an average price of around $70,086 per BTC.
The announcement follows Strategy co-founder and executive chairman Michael Saylor hinting at the purchase on June 8. This buy marks the ninth consecutive week that Strategy acquired Bitcoin.
The latest Strategy purchase news comes as Bitcoin approaches its all-time high again. According to CoinMarketCap, Bitcoin traded at $107,640 at the time of writing, just 3.9% lower than the all-time high of nearly $112,000 reported in May.
Strategy’s newest stock offering
The latest Bitcoin acquisition follows Strategy’s announcement of a $1 billion stock offering, which quadrupled its previous announcement of a $250 million raise. The firm said that it plans to use the proceeds to fund additional Bitcoin acquisitions and corporate expenses.
The stock offering issues 11.76 million shares of Strategy’s 10.00% Series A Perpetual Stride Preferred Stock for $85 per share. Following the deduction of expenses from underwriting and other dues, the firm expects to raise approximately $979 million.
Unlike previous fundraising rounds, this offering provides non-cumulative dividends of 10%, designed to appeal to institutional and professional investors seeking yield-generating opportunities.
Quick Summary of the News
- Strategy purchased 1,045 Bitcoin for $110.2 million.
- The average purchase price was $105,426 per BTC.
- Strategy now holds 582,000 BTC, acquired for $40.79 billion.
- This marks the ninth consecutive week of Bitcoin purchases by Strategy.
- The acquisition follows a $1 billion stock offering by Strategy to fund further Bitcoin buys.
Why It Matters
Strategy’s continued accumulation of Bitcoin is a significant signal of institutional confidence in the cryptocurrency. Michael Saylor’s unwavering belief in Bitcoin as a store of value is well-known, and his company’s actions speak louder than words. This latest purchase reinforces Bitcoin’s narrative as an institutional-grade asset and can potentially influence other companies to follow suit. Furthermore, it demonstrates a long-term commitment, suggesting that Strategy is not simply speculating on short-term price movements.
Market Impact
While a single purchase of $110 million might not immediately send Bitcoin soaring, the cumulative effect of Strategy’s accumulation, coupled with their public advocacy for Bitcoin, has a noticeable impact. Consider the following:
Bitcoin Performance vs. Strategy’s Holdings (Hypothetical)
| Metric | Bitcoin | Strategy (BTC Holdings) |
|---|---|---|
| Total BTC Held | ~19.7 Million | 582,000 |
| % of Circulating Supply | N/A | ~2.95% |
Note: Data is approximate and for illustrative purposes. Strategy’s influence extends beyond just holding Bitcoin; it includes market sentiment and investor confidence.
Expert Take or Personal Insight
Michael Saylor is playing the long game. He isn’t just buying Bitcoin; he’s building a narrative and creating a precedent. The fact that Strategy is willing to issue stock, even with a 10% dividend, to acquire more Bitcoin underscores their conviction. While some might see this as a risky strategy, especially if Bitcoin experiences a significant downturn, Saylor’s consistent messaging suggests he’s prepared for volatility and focused on the long-term potential.
Actionable Insight
Traders and investors should monitor Strategy’s future announcements regarding Bitcoin purchases and stock offerings. Significant purchases, like this one, can act as a short-term bullish signal. More importantly, pay attention to the market’s reaction to these announcements. Are other institutions taking notice? Is there a measurable increase in retail investor interest following Strategy’s moves?
Conclusion
Strategy’s latest Bitcoin purchase is more than just a headline; it’s a continued validation of Bitcoin as a viable store of value and a potential catalyst for further institutional adoption. As Bitcoin navigates price volatility, the commitment from companies like Strategy provides a foundation of stability and long-term growth potential. Keep a close eye on their next move; it could offer valuable clues about the future direction of the market.