Bitcoin Shopping Spree: Strategy Continues Accumulation With $530M Purchase

Strategy (previously MicroStrategy), the leading corporate holder of Bitcoin (BTC), is on the verge of reaching a significant milestone as it approaches the acquisition of 600,000 tokens.

In its latest move, the company purchased 4,980 Bitcoin between June 23 and June 29 for an average price of $106,801 each, totaling approximately $531.9 million. This latest purchase has brought the company’s total Bitcoin holdings to 597,325, acquired for around $42.4 billion.

Despite Bitcoin’s price remaining relatively stable at around $107,000 and $107,500 over the past 24 hours, Strategy’s shares, MSTR, increased by 4.7% to $402.07 on Monday, reflecting investor confidence in the company’s financial moves. The value of Strategy’s Bitcoin holdings now stands at roughly $64 billion.

Funding for these latest acquisitions came through the sale of stock under various at-the-market offerings. Benchmark analyst Mark Palmer noted that the company’s Bitcoin yield, which measures the change in the ratio of its Bitcoin holdings to total shares outstanding, was 19.7% between January 1 and June 29.

Strategy’s Chairman, Michael Saylor, who is often regarded as one of Bitcoin’s most vocal advocates, hinted at the recent purchase in a social media post over the weekend. 

He stated, “In 21 years, you’ll wish you’d bought more,” alongside a chart illustrating the performance of Strategy’s Bitcoin portfolio since its initial investment in late 2020, which shows the aggressive purchases that have increased over the past year.

Interestingly, the company had made a smaller purchase of 245 Bitcoins between June 16 and June 22, considerably less than its usual massive acquisitions. 

For context, Strategy had previously acquired 10,100 Bitcoins in just six days during the period from June 9 to June 15. This shows that while the company often makes large purchases, it can also vary its acquisition strategy based on market conditions.

Over the past month, the market’s leading cryptocurrency has seen a notable volatility spike with prices failing to tackle its current record price of $111,800 reached during last month’s rally. 

Since, Bitcoin has managed to endure subsequent price drops, with the most recent plunging BTC toward the $98,000 zone. However, the cryptocurrency has managed to record a 2.4% recovery on the weekly time frame, currently consolidating at $107,000. 

Originally founded as an enterprise software firm, Strategy has transformed into a leveraged play on Bitcoin, allowing investors to gain exposure to cryptocurrency without directly owning it. 

Since August 2020, the company has consistently increased its Bitcoin reserves by selling stock and debt. This has prompted criticism from analysts who believe this could be dangerous if the Bitcoin price drops below the firm’s average buying price.

Featured image from DALL-E, chart from TradingView.com