What to know:
- Strategy Bitcoin holdings increased after acquiring 1,587 BTC worth $100 million.
- Total corporate treasury reached 846,842 BTC, maintaining industry-leading ownership.
- Michael Saylor signaled another acquisition before the official announcement.
Strategy Bitcoin accumulation continued this week, as the firm added another 1,587 Bitcoins valued at about $100 million between June 8 and June 14, according to a SEC filing from last Monday. This move took place with the average cost of each Bitcoin being $63,024. As a result, the organization maintains its spot as the largest corporate owner of Bitcoin.
With the latest acquisition, Strategy has 846,842 BTC in total. It is estimated that the Bitcoin vault is worth $56 billion using the present market value. The company has spent approximately $64.1 billion in acquiring the BTC, taking into account fees and other expenses. On average, each BTC was purchased at a price of $75,656.
The investments made by the firm constitute more than 4% of the total Bitcoin supply, which is a fixed 21 million. This notwithstanding, the current market valuation of the investment indicates that the firm is losing roughly $8.1 billion.
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Strategy Bitcoin Purchase Funded Through Stock Sales
The most recent purchase made by Strategy Bitcoin was facilitated using their ATM stock offering program. In the last week, Strategy issued 1,732,553 shares of its Class A common stock (MSTR), raising close to $209 million.
The company disclosed that there are MSTR shares worth about $25.75 billion that could be issued in the future, according to the plan. Moreover, Strategy further increased its capability to raise funds by having an additional MSTR shares worth $21 billion, with STRC preferred shares worth $21 billion, and STRK preferred shares worth $2.1 billion.
Saylor Signals Another Strategy for Bitcoin Addition
Before the actual launch, Michael Saylor made his widely known Bitcoin tracking chart, saying, “Still adding dots,” on social media. It seems like a trademark whenever such a post appears online; there will be an announcement on new Strategy Bitcoin purchases shortly.
STRC’s preferred shares, which feature flexible dividend payments and payments on a monthly basis, became one of the main sources of funds for purchasing Bitcoins earlier in the year. STRC is offering an annual yield of 11.5%. But starting from mid-May, STRC has failed to reach the $100 target value once again.
In the recent annual meeting of shareholders held by the company, the investors endorsed a resolution that would see STRC make its dividend payments twice a month, instead of once.
Phong Le, President & CEO of Strategy, explained that the move was aimed at enhancing liquidity, ensuring price stability, and boosting investor interest in the preferred shares. According to him, more regular dividends would allow investors to reinvest quickly.
This latest development further demonstrates Strategy Bitcoin’s accumulation strategy as the firm continues to add to its BTC treasury amid fluctuating market conditions.
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