Strategy Acquires 1,550 BTC Following Disputed 32 Bitcoin Sell-Off
Following a contentious sale last week, Strategy has returned to accumulating Bitcoin with a 1,550 BTC purchase worth $101.3 million, pushing total reserves to 845,256 BTC.
Last week, Strategy acquired 1,550 Bitcoin in a transaction valued at roughly $101.3 million, expanding the company's total cryptocurrency reserves to 845,256 BTC.
According to an 8-K filing submitted to the US Securities and Exchange Commission on Monday, the firm spent an average of $65,332 per Bitcoin on this acquisition. The company's cumulative Bitcoin portfolio was obtained at an average purchase price of $75,680 per BTC, representing a total investment of approximately $63.97 billion.
The recent Bitcoin acquisition was financed through revenue generated from Class A common stock sales via the company's at-the-market offering program. The filing revealed that Strategy collected $181 million in net proceeds from these equity sales throughout the first week of June.
Strategy's current Bitcoin position stands at 845,256 BTC. Based on Bitcoin's present market price of approximately $63,600, the company's cryptocurrency portfolio is valued at around $53.8 billion.
Following the announcement, the company's stock experienced a 6.55% increase in pre-market trading, reaching $126.90, based on Yahoo Finance data available at the time of publication.
Strategy resumes Bitcoin accumulation following disputed transaction
This recent acquisition comes after a Sunday post on X by Michael Saylor, Strategy's executive chairman, in which he stated that it was "a good time to add more dots."
The acquisition also represents a return to the company's Bitcoin accumulation approach following its disputed disposal of 32 BTC the previous Monday, marking the firm's first sale since 2022.
In the wake of that sale, Bitcoin price experienced a 21% decline, momentarily dropping back to $61,000 levels not seen in four months, triggering intense backlash from market participants who cautioned about a possible "doom loop" scenario should the company be compelled to liquidate its reserves.
On Friday, CryptoQuant CEO Ki Young Ju defended Saylor against criticism after CNBC host Jim Cramer claimed he was "murdering Bitcoin." Ju contended that without Strategy's acquisitions, Bitcoin would have dropped to $22,000.
Bernstein analysts released a Monday report indicating that Strategy had successfully expanded its Bitcoin holdings throughout a price decline of roughly 50%, emphasizing the company's robust, overcollateralized and liquid financial position, while maintaining an "Outperform" rating and reaffirming a $450 price target for the stock.