Strategy Buys $34.9M Bitcoin While Adding $300M To Cash Reserves

• Strategy acquired 520 Bitcoin for $34.9 million over the past week, increasing its portfolio to 847,363 BTC.
• The company now controls 4.23% of the premier crypto asset’s circulating supply.
• It also raised its cash reserves by $300 million to $1.4 billion.
• Executive Chair Michael Saylor responded to criticisms over their company’s stock dilution amid their aggressive Bitcoin accumulation.

Strategy (MSTR) continues its streak of Bitcoin (BTC) accumulation, demonstrating its commitment to the digital asset after a sale of only 32 BTC catalyzed FUD (Fear, Uncertainty, Doubt) in the entire crypto market early this month. Michael Saylor, the company’s Executive Chairman, believes there’s a vastly untapped global opportunity for Bitcoin.

Strategy’s Bitcoin Holdings

The company’s Form 8-K disclosure on Monday reveals that it acquired 520 BTC between June 15 and 21 for an aggregate purchase price of $34.9 million. The transaction averaged $67,068 per BTC as the asset traded around the $67,200 to $62,200 range.

The move raises Strategy’s total Bitcoin holdings to 847,363 BTC, accounting for roughly 4.23% of the premier crypto asset’s 20.05 million circulating supply. Blockzeit’s Strategy Bitcoin Tracker indicates it’s the company’s 114th Bitcoin purchase since August 2020.

ADVERTISEMENTSo far, Strategy has already allocated $64.10 billion into its Bitcoin acquisitions, with an average purchase cost of $75,651 per BTC.

Strategy’s Bitcoin Holdings## Increase in Cash Reserves

Strategy sourced the funding for its latest Bitcoin transactions from the proceeds of MSTR Class A Common Stock offerings within the same timeframe. The business intelligence solutions provider and largest Bitcoin-focused digital asset treasury (DAT) company raised $335.5 million from the event.

Most of the proceeds of the latest MSTR stock sales went to strengthening Strategy’s cash reserves. It increased the cash in its vaults to $1.4 billion.

ADVERTISEMENTThe amount serves as a backup to ensure that Strategy can fulfill its financial obligations to investors during market stress without needing to sell its BTC holdings or other assets. To date, the business has $1.7 billion in annual dividends payable to MSTR, STRC, STRD, STRK, and STRF shareholders.

Strategy’s current cash on hand allows coverage of up to 9.8 months of dividend payments. And if all that goes bust, it still has its Bitcoin to sell.

Saylor Responds to Critics

Saylor recently urged the crypto community to prioritize unity in upholding Bitcoin’s core principles. Furthermore, he highlighted that there remains a vastly untapped global capital opportunity for Bitcoin adoption.

“Bitcoiners agree on the 99% that matters,” Saylor tweeted during the weekend. “We shouldn’t let the 1% divide us while nearly all global capital has yet to enter Bitcoin’s monetary network. The opportunity is bigger than the argument.”

The Strategy chair’s call for unity comes amid criticisms over MSTR’s dilution and questions about the sustainability of its preferred stock schemes. Peter Schiff, founder of SchiffGold, claimed that the company has, for a third week in a row, sacrificed its common shareholders by selling MSTR at a discount to buy more BTC.

“So for a third week in a row, Bitcoin per MSTR share went down,” said Schiff. “You destroyed value by effectively selling $1.20 worth of Bitcoin to buy $1 worth of Bitcoin.”

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