Strategy Will Soon Own Nearly 800,000 Bitcoins

Strategy, the world’s largest public owner of bitcoins, added a substantial amount of the cryptocurrency to its holdings last week, approaching a total of 800,000 bitcoins. The company acquired 13,927 bitcoins for one billion dollars between April 6 and April 12, according to an 8-K filing with the U.S. Securities and Exchange Commission (SEC) on Monday.

The purchases were made at an average price of 71,902 dollars, marking another acquisition below the company’s average purchase price of 75,577 dollars. Strategy now holds 780,897 bitcoins on its balance sheet, acquired at a total cost slightly above 59 billion dollars. The company has 19,103 bitcoins remaining to reach 800,000 after purchasing over 107,000 so far this year.

According to the filing, the one billion dollar purchases were financed by revenues from Strategy’s perpetual preferred equity, Stretch (STRC). The company sold 10 million shares of STRC last week, generating about one billion dollars in nominal value and net income. During this period, no shares of STRF, STRK, STRD, or MSTR were sold.

According to STRC.live, STRC recorded its second-largest weekly issuance in history, nearly three times greater than the four-week average. The stock has seen record sales in recent weeks after Strategy modified its selling rules in early March.

Michael Saylor hinted at the latest purchase in a post on X on Sunday, sharing a chart of Strategy’s bitcoin purchase history showing 105 acquisitions since 2020, a pattern often seen before new purchases. The aggressive bitcoin buying by Strategy comes despite significant unrealized losses. Last week, Strategy reported that its unrealized losses amounted to 14.46 billion dollars in the first quarter of 2024.

In addition to Strategy, bitcoin ETFs also recorded significant purchases last week, with spot bitcoin ETFs seeing an inflow of 786 million dollars during that period. The crypto markets recovered early last week following the announcement of a ceasefire between the U.S. and Iran, with bitcoin reaching 70,000 dollars again and briefly spiking towards 73,000 dollars.