Breaking: Strategy Resumes Bitcoin Accumulation with $472M Addition
Strategy resumed Bitcoin buying, acquiring 4,225 BTC for $472.5 million, solidifying its position as the largest corporate holder.
In a strategic move that highlights its commitment to Bitcoin, Strategy, formerly MicroStrategy, has announced the acquisition of an additional 4,225 BTC for $472.5 million, effectively resuming its Bitcoin acquisition strategy after a brief pause.
This latest purchase solidifies the company’s position as the first publicly traded entity to hold over 600,000 BTC, a significant milestone in the corporate adoption of cryptocurrency.
Moreover, the announcement has also been met with positive market sentiment, with MSTR stock experiencing an uptick from its previous closing price of $434.
Strategy Resumes Accumulation
According to a press release the company issued, it purchased the acquired Bitcoin at an average price of $111,827 per bitcoin, resulting in a year-to-date (YTD) BTC yield of $20,242.87 billion at an average purchase price of $71,268 per bitcoin.
Moreover, this substantial investment reflects the company’s long-term conviction in Bitcoin’s potential as a store of value and a strategic asset.
The Securities and Exchange Commission (SEC) filing reveals the funding mechanism employed for this latest Bitcoin acquisition. Strategy primarily utilized proceeds from the sale of its common shares, raising $330.9 million.
Furthermore, the company garnered $71.1 million, $55.3 million, and $15 million from the sale of STRK, STRF, and STRD securities, respectively. This diversified approach to funding highlights the company’s proactive capital management strategy in support of its Bitcoin accumulation goals.
Michael Saylor’s Cryptic Message
This renewed acquisition drive follows a cryptic message from Michael Saylor, a prominent advocate for Bitcoin and the founder of MicroStrategy. His social media post, featuring a graph of Strategy’s BTC acquisitions accompanied by the caption, “Some weeks you don’t just HODL,” served as an implicit indication of the impending Bitcoin purchase.
Notably, this contrasts with his previous statement, “Some weeks you just need to HODL,” which accurately signaled a temporary cessation of Bitcoin purchases.
Additionally, Strategy had briefly paused its Bitcoin acquisition spree between June 30 and July 6, ending a twelve-week period of continuous accumulation. With the resumption of Bitcoin purchases, there is speculation that this could initiate a new phase of consistent weekly acquisitions.
Looking ahead, Strategy has already announced a $4.2 billion STRD offering as part of its at-the-market (ATM) program. The company intends to allocate the net proceeds from this stock offering towards further Bitcoin acquisitions, underscoring its unwavering commitment to expanding its Bitcoin holdings.
