Key Takeaways
- Mega Purchase: Strategy (MSTR) acquired 10,100 BTC ($1.08B) last week, averaging $104,080 per Bitcoin (BTC).
- Record Holdings: The firm now controls 592,100 BTC ($63.3B)—3% of Bitcoin’s circulating supply.
- Funding Strategy: Raised $979.7M via STRD preferred stock and ATM share sales to fuel buys.
- Buying Through Volatility: Accumulated despite Middle East tensions that briefly crashed crypto markets.
Strategy’s Relentless Bitcoin Accumulation
While the markets were in a state of panic last week over missile exchanges between Iran and Israel, the firm Strategy (previously known as MicroStrategy) recognized a buying window. The Nasdaq-listed firm, which intends to be recognized more for their Bitcoin treasury than for their software services, purchased 10,100 Bitcoin (BTC) in total during the time period of June 9-15, which is the largest weekly purchase made by the firm since early May.
The company’s holdings have now jumped to 592,100 BTC, making it the largest corporate BTC wallet in the world. At this point, the crypto community is aware that Bitcoin is the exit strategy for fiat.
Michael Saylor posted on his X account:
How They Funded the Spree
1. STRD Preferred Stock
- Raised $250M via Nasdaq-listed Bitcoin-backed shares yielding 6.125%.
- Investors bet on BTC’s appreciation while earning dividends.
2. ATM Share Sales
- Generated $729.7M by drip-selling STRK common and STRF preferred shares.
- Avoided massive dilution via gradual offerings.
3. Debt-Free Approach
Unlike 2022’s risky loans, Strategy now uses equity instruments to fund buys, a shift applauded by analysts.
Market Impact
Strategy recently executed a series of corporate Bitcoin purchases during a brief dip in Bitcoin price to $101K during periods of geopolitical tension to confirm its signature “buy the dip” strategy. The execution solidifies its top leadership position in corporate bitcoin adoption; for context, now over 235 companies currently are holding BTC, a 13% increase month-on-month (MoM).
The intrepid BTC purchase triggered the reactive investor thesis as investors rewarded the acquisition with a 4% jump in MSTR share price, double Bitcoin’s approximate 2% bounce since the company’s purchase.
What the Landscape Shows
Strategy’s moves reflect a macro blueprint:
- Hodl Forever: Zero BTC sold since 2020.
- Innovative Financing: Pioneering crypto-backed securities.
- Institutional On-Ramp: STRD shares let traditional investors gain BTC exposure without direct ownership.
Critics warn: The firm’s $7.3B debt and reliance on BTC’s price could backfire in a prolonged bear market.
What’s Next?
With $500M remaining in its at-the-market (ATM) program, Strategy could soon cross 600K BTC. As Saylor quipped sometime: “There are only 21 million tickets on this spaceship.”
Summing Up
The latest billion-dollar purchase of Bitcoin by Strategy keeps its position as the most undeterred corporate crypto accumulator, using volatility to its advantage while introducing innovation in funding models. While the company is approaching 600K BTC, Saylor’s firm conviction continues to push Bitcoin deeper into the world of mainstream finance.
Final Thoughts: Could Strategy’s holdings eventually trigger a Bitcoin supply crunch? The true test would be if/when it ever sells. Until then, every plunge in the market just means a few more “orange pills” for Saylor’s stash.
For more Bitcoin-related news, read: Bitcoin Weekly Price Prediction: BTC Rebound Lacks Acceptance amid Mixed Market Signals
