Strategy Expands Bitcoin Holdings With Massive Third-Largest Acquisition

Michael Saylor’s enterprise software company, Strategy (previously MicroStrategy), has made headlines once again with a substantial Bitcoin (BTC) acquisition, pushing its total holdings beyond 600,000 coins. 

The company purchased an impressive $2.46 billion worth of Bitcoin over the past week, marking its third-largest purchase by dollar amount since it began acquiring the digital asset five years ago.

Bitcoin Acquisition At Record Prices

Between July 28 and August 3, Strategy added 21,021 Bitcoin to its holdings, bringing its total to 628,791 tokens. At current market prices, the firm’s portfolio is valued at over $71 billion. 

Saylor has adeptly transformed his company from a traditional software provider into the leading corporate buyer of Bitcoin, utilizing innovative financial strategies to fuel these purchases.

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The latest acquisition was made at an average price of $117,526 per token, which is the second-highest price the company has ever paid, just shy of the $118,940 average from the previous month. 

Strategy is the largest corporate Bitcoin holder, according to data from BitcoinTreasuries.net. BTC mining company MARA Holdings is second with 50,000 coins, which highlights Saylor’s firm’s purchasing power.

Notably, this position has not only solidified Saylor’s influence in the crypto space but has also inspired other public companies to adopt similar treasury strategies aimed at accumulating and holding digital currencies.

These include Trump’s social media company, boosted by a new regulatory regime and legislation in the US aimed at positioning the country as the crypto capital of the world, a mission that President Donald Trump has advocated since his election campaign last year.

Saylor’s Strategy Pledges To Protect Shareholder Value

To fund these massive purchases, Bitcoin bull Michael Saylor has employed a mix of common and preferred share sales alongside debt instruments. Recently, the company launched its latest preferred stock offering, dubbed “Stretch,” in late July. 

In its second-quarter report, Strategy announced an unrealized gain of $14 billion, primarily driven by the recent rebound in Bitcoin prices and a new accounting requirement that necessitated the revaluation of its Bitcoin holdings.

Saylor has also made a commitment to investors, stating that he will refrain from issuing new common shares at less than 2.5 times the company’s net asset value, except for covering debt interest or preferred dividends. 

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This pledge comes in light of concerns raised by critics like Jim Chanos, who have expressed apprehension about the premium that Strategy’s Bitcoin holdings place on its share price and the numerous securities offerings the company has executed.

Since its initial foray into Bitcoin, Strategy’s stock, MSTR, has skyrocketed over 3,000%, significantly outperforming Bitcoin itself and major stock indices such as the S&P 500 and Nasdaq 100. 

The company’s largest purchases occurred in November, totaling $5.4 billion and $4.6 billion, respectively, demonstrating Saylor’s aggressive strategy in the cryptocurrency market.

However, on Monday, the firm did not disclose any further purchases, as it has commonly done over the past few months. Perhaps it is starting to reassess its direction with biweekly acquisitions. It remains to be seen what the firm’s next moves will be, as there have been no further official comments on the matter.

Featured image from DALL-E, chart from TradingView.com