- After a cryptic post hinting at it on Sunday, Strategy delivered the announcement on Monday about its latest batch of Bitcoin purchases.
- Last week, the company added 430 BTC for $51.4 million to its treasury, increasing its holdings to 629,376 BTC.
Strategy (formerly MicroStrategy) announced its Bitcoin (BTC) top-up last week. The disclosure came as anticipated after the company’s executive chairman, Michael Saylor, hinted about it on Sunday.
Latest Bitcoin Purchase of Strategy
According to Strategy’s Form 8-K filing with the US Securities and Exchange Commission (SEC) this Monday, it secured 430 BTC between August 11 and 17 at an aggregate purchase price of $51.4 million. This translates to $119,666 per BTC. The company funded the transactions using the cumulative proceeds of its Series A STRK (perpetual strike preferred stock), STRF (perpetual strife preferred stock), and STRD (perpetual stride preferred stock) shares.
The move increases Strategy’s holdings to 629,376 BTC, comprising 2.99% of Bitcoin’s 21 million limited supply or 3.16% of the digital asset’s 19.9 million circulating supply today. The latest development raises its BTC yield to 25.1% year-to-date. BTC yield is a key performance indicator (KPI) denoting the company’s Bitcoin holdings against its diluted shares.
Meanwhile, the event solidifies Strategy’s position as the top Bitcoin holder among publicly-traded companies. Its haul is also more than the coffers of top private companies and government entities holding the asset. However, it remains overshadowed by the 748,968 BTC reserves of BlackRock for its iShares Bitcoin Trust (IBIT) exchange-traded funds (ETFs) in the US and Satoshi Nakamoto’s untouched 1.096 million BTC stash.
Strategy’s Unrealized Gains in Bitcoin
Strategy has already invested $46.15 billion for its Bitcoin war chest. The numbers come at a dollar cost average of $73,320 per BTC.
As of Monday noon, its unrealized gain from its BTC holdings stands at around $26 billion, as the premier digital asset traded at roughly $115K per coin.
Mixed Reactions on Saylor’s BTC-Fueled Treasury
Again, Strategy and Saylor’s announcement has garnered mixed reactions from crypto community members and regular critics. Some were impressed at the company’s conviction while keeping its average cost at approximately $73K per BTC, while buying during the asset’s new all-time high of $124,457.12 last week.
Others expressed concern at how its scheme may not hold once BTC undergoes a deep correction of up to 50% once the next bear market occurs. Moreover, many noticed its tamer purchasing trends compared to the previous months. It should be noted that the firm only made an $18 million acquisition the week prior to its latest batch of purchases.
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