Strategy Returns to BTC Accumulation with $43M Bitcoin Purchase
The company purchased $43 million worth of Bitcoin in the past week following mixed market sentiment after Michael Saylor hinted at possible BTC sales for dividend financing.
Last week, Strategy purchased 535 Bitcoin worth $43 million, continuing its accumulation approach just days after chairman Michael Saylor indicated the firm might liquidate portions of its BTC reserves to support dividend distributions.
According to a filing submitted Monday to the US Securities and Exchange Commission, the largest corporate holder of Bitcoin globally purchased the digital asset between May 4 and May 10, paying an average of $80,340 per BTC.
Following this transaction, Strategy's aggregate Bitcoin (BTC) reserves reached 818,869 BTC, obtained for approximately $61.86 billion with an average acquisition cost of $75,540 per token, factoring in all fees and expenses.
This marks Strategy's initial acquisition since April 27, when the firm purchased 3,273 BTC valued at $255 million. The buy also came after the company's earnings call for the first quarter, during which Saylor stated Strategy would "probably sell some Bitcoin" to finance a dividend and demonstrate that such a transaction wouldn't destabilize the company or the wider Bitcoin marketplace.
Saylor teased on Sunday that the company planned to continue BTC acquisitions following the previous week's hiatus.
Proceeds from stock sales financed the Bitcoin acquisition. According to the filing, the bulk of the transaction, totaling $42.9 million, came from Class A common stock (MSTR) sales, with an additional $100,000 raised through Stretch (STRC) stock issuance.
Strategy stock prices climb in pre-market trading amid Bitcoin sale speculation
Following Monday's disclosure of the Bitcoin acquisition, Strategy shares experienced gains during premarket trading.
Yahoo Finance data indicates the company's shares climbed 4.3% to trade above $187.50 as of the time of publication.
Year-to-date, Strategy's stock has surged 23% even as Bitcoin has fallen 7.2% over the identical timeframe, according to TradingView data.
Nevertheless, investor apprehension lingers after Strategy's first quarter earnings discussion, where Saylor mentioned that Strategy might intermittently liquidate segments of the company's Bitcoin portfolio to support dividend payments and to "inoculate the market."
Although certain investors expressed worry that a Strategy liquidation might trigger additional cascading sell-offs, others, including Bitcoin proponent Samson Mow, suggested that Strategy's prospective sales could provide the company with enhanced market flexibility.
According to Strategy investor Adam Livingston, intermittent sales could enable the company to fund additional Bitcoin acquisitions down the line.