Strategy Deepens Bitcoin Bet with Significant Purchase

Strategy (MSTR), already the largest corporate Bitcoin holder, has substantially increased its BTC reserves by acquiring an additional 10,100 BTC. This strategic move, funded primarily by proceeds from their recently issued 10% Series A Perpetual Stride Preferred Stock (STRD), further solidifies the company's position in the cryptocurrency market.

The acquisition brings Strategy's total Bitcoin holdings to a staggering 592,100 BTC. With Bitcoin currently trading around $107,000, these holdings are valued at approximately $63.3 billion. The company's average purchase price now sits at $70,666 per BTC.

Funding the Acquisition

The purchase was financed through a combination of:

• Proceeds from the STRD issuance: This offering, targeted at long-term, high-yield investors, generated approximately $979.7 million in net proceeds after fees and expenses.
• At-the-market (ATM) share sale program: Sales of other preferred stock classes, STRK and STRF, contributed an undisclosed amount (represented by $TKTK in the original article) between June 9 and June 15.

Market Reaction

Early market reactions show MSTR shares trading up 1.60% in pre-market hours, while Bitcoin remains stable around the $107,000 mark.

Key Takeaways

• Increased Bitcoin Holdings: Strategy continues to aggressively accumulate Bitcoin, reinforcing its commitment to the cryptocurrency.
• Innovative Funding Strategy: The company effectively utilizes preferred stock offerings and ATM sales to finance its Bitcoin purchases.
• Positive Market Signal: The acquisition demonstrates confidence in Bitcoin's long-term value proposition.