Quick Takeaways:
- 850 BTC Purchased for $99.7M: Strategy now holds 639,835 BTC, valued at around $72 billion.
- Stock Sales Fund Bitcoin Purchases: The company uses MSTR and STRF stock offerings to finance its acquisitions.
- Bitcoin as a Treasury Asset: Strategy continues to double down on Bitcoin as a core part of its strategy.
Strategy’s Bitcoin Holdings Surge with $100M Purchase
In another significant move, Strategy (formerly known as MicroStrategy) has bought 850 Bitcoin for $99.7 million, pushing its total Bitcoin holdings to 639,835 BTC, worth a staggering $72 billion.
This latest purchase is a testament to the company’s ongoing commitment to Bitcoin as a cornerstone of its long-term strategy.
What stands out here is that Strategy didn’t just pick up a few coins; this was a sizeable investment, with an average purchase price of $117,344 per Bitcoin.
This isn’t the first time Strategy has made such a move, and it likely won’t be the last. Michael Saylor, the company’s co-founder, continues to view Bitcoin as the future of financial systems, and these acquisitions speak to that belief.
How Strategy Funds Its Growing Bitcoin Holdings
From September 15 to September 21, Strategy bought 850 BTC, increasing its holdings to a total of 639,835 BTC.
So far, the company has invested about $47.3 billion in Bitcoin, with an average cost of $73,971 per Bitcoin.
Despite the usual price swings, Strategy has seen about $25 billion in paper gains from its Bitcoin holdings.
What’s more interesting, though, is how Strategy funds these ongoing Bitcoin buys. Instead of taking on more debt or traditional loans, the company raises capital by issuing its Class A common stock (MSTR) and perpetual preferred stock (STRF).
By doing so, Strategy maintains a flexible financial structure, allowing it to acquire Bitcoin without adding unnecessary financial strain.
This approach fits within the company’s 42/42 capital plan, which aims to raise $84 billion by 2027 for the express purpose of acquiring more Bitcoin.
The Growing Trend of Bitcoin Holdings in Corporate Treasuries
The trend of corporate Bitcoin adoption is picking up steam. Strategy isn’t alone in this strategy; over 170 public companies now hold Bitcoin on their balance sheets.
Other big players, like Coinbase, Riot Platforms, and MARA, are also accumulating Bitcoin as part of their long-term treasury plans.
However, it hasn’t been all smooth sailing for Strategy. Despite meeting the criteria for inclusion, Strategy was excluded from the S&P 500 index, a move that surprised many.
The company’s heavy involvement in Bitcoin likely played a role in that decision. The market has been hesitant to fully embrace companies with large Bitcoin holdings, and this is a reminder that, even though Bitcoin has become more mainstream, it’s still viewed with some skepticism in traditional financial circles.
But Michael Saylor isn’t backing down. He recently participated in the discussion about creating an American bitcoin reserve, which could potentially be included in purchasing the government 1 million BTCs.
If such a plan was to come in, it would probably increase the condition of bitcoin even further and perhaps pave the way for a broad institutional adoption.
Why Bitcoin Holdings Matter for Strategy’s Future
At the heart of it all, Bitcoin holdings aren’t just an investment strategy for the company; they are foundational to the company’s long-term vision.
By using stock sales to fund Bitcoin purchases, Strategy is building a solid base for the future while keeping its financial flexibility intact. It’s a bold strategy, but it seems to be paying off.
As more and more companies adopt Bitcoin as a treasury asset, we’ll likely see the trend continue to grow. Strategy’s approach to Bitcoin acquisition sets the stage for other companies to follow suit.
While the road ahead may have its bumps, Strategy is committed to holding on to Bitcoin, and that’s a sign that the digital currency has more staying power than many originally thought.
