Strategy acquired 1,587 bitcoin for approximately $100 million, bringing its total holdings to 846,842 BTC and making it the largest corporate bitcoin holder by a wide margin.
The purchase was made at an average price of $63,024 per bitcoin.
Funded through common stock sales
The acquisition was funded by selling common MSTR stock, meaning existing shareholders now own a smaller slice of the company’s bitcoin stack on a per-share basis.
This dilution has pushed Strategy’s year-to-date BTC yield down from 13% as of June 1 to roughly 12.5% following this purchase and the one before it.
While the company continues to grow its absolute bitcoin position, the repeated use of equity issuance to fund purchases means each MSTR share represents less bitcoin than it did before the last two buys.
Cash reserves also grow
Alongside the bitcoin buy, Strategy disclosed it had increased its USD reserve by $100 million to $1.1 billion.
Michael Saylor announced the purchase on social media, referencing both the BTC and USD reserve increases along with the company’s ticker symbols $MSTR and $STRC.
Market reaction
Strategy shares rose 5% in pre-market trading on the news, with bitcoin trading above $66,000 at the time of the announcement.
The company has now spent a total of roughly $53.4 billion acquiring its bitcoin position at an average cost basis of approximately $63,100 per coin.
