Key Takeaways
- Strategy purchased 1,045 BTC for $110.2M at an average of $105,426 per coin.
- Total holdings now stand at 582,000 BTC, worth $40.8B at an average cost of $70,086.
- The company launched a $1B preferred stock offering to fund further Bitcoin acquisitions.
Strategy has continued its aggressive Bitcoin accumulation, purchasing 1,045 BTC for $110.2 million, according to a U.S. Securities and Exchange Commission filing on Monday.
The coins were acquired at an average price of $105,426 per Bitcoin.
Current holdings & market position
The company now holds 582,000 BTC, purchased at a total cost of $40.8 billion with an average entry price of $70,086.
This marks the ninth consecutive week Strategy has bought Bitcoin, coinciding with the asset trading just 3.9% below its all-time high of around $112,000.
Recent stock offering
The purchase was hinted at by Strategy co-founder and executive chairman Michael Saylor on June 8.
The move came shortly after Strategy quadrupled a prior stock offering, increasing it from $250 million to $1 billion.
Details of the new offering
The new offering involves 11.76 million shares of its 10.00% Series A Perpetual Stride Preferred Stock at $85 per share.
After deductions, Strategy expects to raise approximately $979 million.
The offering targets institutional investors, with a 10% non-cumulative dividend.
Historical context & influence
Strategy, formerly MicroStrategy, began its Bitcoin buying spree in August 2020 and now owns over 2.75% of the total Bitcoin supply.
Its market cap has surged from $1.2 billion in mid-2020 to $104.6 billion.
Influence on other firms
Inspired by Strategy’s model, firms like Metaplanet, The Blockchain Group, and Norwegian Block Exchange have begun similar treasury strategies, with some seeing triple-digit stock gains following BTC purchase announcements.
