Strategy Expands Bitcoin Treasury by 1,587 BTC in $100M Purchase, Total Reaches 846.8K
Michael Saylor's Strategy purchased 1,587 Bitcoin worth $100 million during the past week, pushing total reserves to 846,842 BTC following a $209 million capital raise via MSTR share offerings.
Last week saw Michael Saylor's Strategy, recognized globally as the largest publicly-traded corporate holder of Bitcoin, further expand its digital asset portfolio even as BTC prices remained beneath the firm's roughly $75,700 average acquisition cost.
The company purchased 1,587 Bitcoin (BTC) valued at $100 million during the period spanning June 8 through Sunday, as revealed in an 8-K regulatory filing submitted Monday to the US Securities and Exchange Commission.
These Bitcoin were acquired at a mean price point of $63,024 each, which resulted in a modest reduction of the company's aggregate average cost basis, lowering it to $75,656.
Following this most recent transaction, Strategy's Bitcoin treasury has reached 846,842 BTC, representing a cumulative investment of $64.07 billion. Based on the current Bitcoin market price of approximately $66,216, the total value of these holdings stands at around $56.1 billion, per CoinGecko market data.
MSTR sales behind the purchase
Mirroring the approach used for the prior 1,550 BTC purchase that was disclosed the previous Monday, Strategy financed this week's Bitcoin acquisition by monetizing shares of its Class A common stock (MSTR).
The regulatory filing revealed that the company generated approximately $209 million in proceeds from the sale of 1.73 million MSTR shares throughout the reporting period. Meanwhile, preferred share offerings, which include STRC, STRF, STRK and STRD, recorded zero activity for the week.
Data from STRC.live, which monitors Strategy's preferred stock program performance, shows that STRC continued trading beneath its $100 par value for the fourth week in succession as of June 12. Trading in the mid-$96 territory, the instrument experienced its most extended period below par value since its initial offering.
On Friday, STRC finished trading at $94.80, registering approximately a 1% decline, based on TradingView market data.
Executive chairman of Strategy, Michael Saylor, telegraphed the incoming Bitcoin purchase announcement through a Sunday post on X, stating, "Still adding dots," a cryptic message that the investment community has learned to interpret as a signal of forthcoming Bitcoin accumulation by the company.
This acquisition arrives roughly two weeks following Strategy's announcement of selling 32 BTC on June 1, marking the company's first publicized Bitcoin divestment in several years. Despite the transaction accounting for merely a minuscule percentage of the firm's overall Bitcoin position, the sale sparked considerable discussion within the cryptocurrency community, prompting certain market analysts to wonder if the company might be pivoting away from its historically steadfast accumulation-and-hold strategy.
In response to the controversy, Saylor recently justified the sale during a conversation with Cointelegraph, explaining that Bitcoin treasury companies need to preserve the flexibility to liquidate portions of their holdings when necessary to back dividend-distributing securities.