What to know:
- Strategy adds 1,550 BTC worth $101.3 million, purchasing the coins at an average price of $65,332 per Bitcoin.
- Total Bitcoin holdings reach 845,256 BTC, giving Strategy control of more than 4% of Bitcoin’s 21 million supply.
- Michael Saylor signals confidence in current market levels, hinting at the purchase through a Bitcoin chart post before the announcement.
Bitcoin Treasury firm Strategy has added to its Bitcoin inventory after acquiring 1,550 new BTC between June 1st and June 7th. In a filing with the SEC, the company states that it used $101.3 million to acquire new coins at a rate of $65,332 per coin.
The new acquisition is likely to make Strategy the biggest corporation in terms of its Bitcoin holdings. Currently, Strategy owns 845,256 BTC worth about $53.5 billion in terms of market value. In his statement, the Executive Chairman, Michael Saylor, said that Strategy had spent about $64 billion acquiring its Bitcoin holdings at an average of $75,680 per BTC.
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Strategy Controls More Than 4% of Bitcoin Supply
Strategy holds 845,256 Bitcoins, giving it control of over 4% of the 21 million maximum Bitcoin supply. As large as Strategy’s holdings are, the company is currently experiencing an unrealized loss of around $10.5 billion, owing to the continued trading of Bitcoin at below its purchase price.
Recent purchases made by the company were financed via the ATM share sales program. Within the last week, Strategy disposed of 1.4 million shares of its Class A common stock, MSTR, raising approximately $181 million from such sales. According to the company, there are still more than $26 billion worth of MSTR shares eligible for issuance under this plan.
Strategy has further widened its plans for raising capital through MSTR stock issue worth up to $21 billion, together with $21 billion worth of STRC preferred stock and $2.1 billion worth of STRK preferred stock. On top of this, Strategy has made efforts towards ensuring that it has enough capital by increasing its cash holdings from $900 million to $1 billion.
Saylor Signals Confidence in Current Bitcoin Prices
Before the news broke out, Michael Saylor tweeted one of those famous Bitcoin tracking charts, saying, “Time to add in more dots.” The public has learned to identify those tweets as a possible indicator that it may be planning to make a new announcement about buying Bitcoin.
This time around, the message seemed to have more signals about the perception by the company that current price levels are a good point for purchasing Bitcoin. Bitcoin’s price had fallen below $60,000 and then recovered above $63,000.
This last buy comes after a strange step unveiled on June 1. In the report, they had offloaded 32 BTC from May 26 to May 31, which is their first time selling Bitcoin since late 2022.
This auction raised about $2.5 million with an average price of $77,135 for each Bitcoin sold. Strategy indicated that the money received from this would be allocated towards the payment of dividends related to STRC.
This was because the news followed a period during which Bitcoin had been undergoing selling pressure. After the revelation, the value of Bitcoin fell from $73,700 to about $59,300.
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