Summary
- Strategy acquired 1,550 Bitcoin for $101 million, increasing its total holdings to 845,256 BTC.
- The company restored its cash reserves to $1 billion after previously using much of it for debt buybacks.
- This acquisition follows Strategy's first Bitcoin sale in over three years, which resulted in its steepest weekly decline since November 2022.
Strategy announced on Monday that it has purchased 1,550 Bitcoin for $101 million, marking a return to normal operations after a liquidation that led to the company's worst weekly performance since November 2022.
The firm, based in Tysons Corner, Virginia, disclosed in an SEC filing that it currently holds 845,256 Bitcoin. With the price of Bitcoin hovering around $63,000, a 1.4% rise in the last day, this stockpile is valued at approximately $53.3 billion, according to CoinGecko.
Following the announcement, shares of the Bitcoin-focused company increased by 3.4%, reaching above $124, as reported by Yahoo Finance. Last week, however, shares fell by 24% after the company revealed it sold some of its Bitcoin for the first time in over three years.
The sale involved 32 Bitcoin for $2.5 million, a minor fraction of its overall holdings, yet it raised questions about the confidence in co-founder and Executive Chairman Michael Saylor and his strategy for the largest corporate holder of the cryptocurrency.
In its latest SEC filing, Strategy indicated that it had bolstered its cash reserves. Although this purchase was the largest in three weeks, the company set aside about $80 million to manage dividend payments and debt obligations.
Rather than focusing on its Bitcoin acquisition, Strategy highlighted the increase in its cash position, now at $1 billion.
Last month, the company reduced its cash reserves by 61% to repurchase debt at a discount, which limited its ability to fulfill dividend obligations on its preferred stock. Previously, it had allocated $2.25 billion in cash for Stretch (STRC).
As of Monday, STRC was priced at $94.72, nearing its $100 par value. Historically, when shares exceed this threshold, the company has issued STRC and utilized the proceeds to buy Bitcoin, a strategy that has been profitable for Strategy this year.
Recently, Bitcoin dropped to $59,400, its lowest level since October 2024. This decline exacerbated unrealized losses on Strategy’s holdings that have surfaced in the previous month. Currently, the company’s Bitcoin holdings are approximately $10.7 billion in the red.
Saylor noted during the company's first-quarter earnings call last month that it would “likely” sell some Bitcoin to “inoculate the market,” a strategy aimed at demonstrating the company’s commitment to STRC’s annual dividend of 11.5%, which is distributed monthly.
“32?” Saylor remarked simply in a recent X post on Sunday, referencing the company's recent sale, which accounted for just 0.0038% of its total holdings.