TLDR
- Strategy purchased 1,550 BTC for about $101.3 million between June 1 and June 7.
- The company now holds 845,256 BTC, valued at roughly $53.5 billion.
- Strategy funded the acquisition through at-the-market sales of MSTR shares.
- The firm recently sold 32 BTC for about $2.5 million to fund STRC dividends.
- Strategy reported a $1 billion reserve balance as of June 7.
Strategy disclosed a fresh Bitcoin purchase after a brief sale, lifting its total holdings to 845,256 BTC. The company bought 1,550 BTC for about $101.3 million between June 1 and June 7. The filing confirms continued accumulation following a 32 BTC sale reported earlier.
Strategy Expands Bitcoin Holdings to 845,256 BTC
Strategy acquired 1,550 BTC at an average price of $65,332 per coin, according to an 8-K filing. The purchase occurred between June 1 and June 7 and cost about $101.3 million. As a result, the company now holds 845,256 BTC valued near $53.5 billion.
Michael Saylor said the company bought its bitcoin at an average price of $75,680 per coin. He added that total acquisition costs reached about $64 billion, including fees and expenses. The holdings represent more than 4% of bitcoin’s 21 million supply cap.
However, current market prices imply about $10.5 billion in unrealized losses. Bitcoin traded in the low $60,000 range during the latest purchase period. The company previously sold 32 BTC at an average net price of $77,135.
Strategy said it earmarked the $2.5 million in proceeds for STRC preferred dividends. That sale marked its first bitcoin disposal since late 2022. JPMorgan analysts said the sale “spooked” markets even if it was symbolic and voluntary.
Equity Sales and Reserves Support Strategy Accumulation
Strategy funded the new purchases through at-the-market sales of Class A shares. Last week, it sold 1,409,600 MSTR shares for about $181 million. As of June 7, $25.96 billion in MSTR shares remain available under the program.
The company extended its ATM programs to include $21 billion in additional MSTR. It also authorized $21 billion of STRC preferred stock and $2.1 billion of STRK preferred stock. STRC offers monthly dividends with a variable annualized rate of 11.5%.
STRC has traded below its $100 par value since mid-May. Therefore, Strategy did not use STRC proceeds to buy bitcoin during the past three weeks. The company reported a $1 billion reserve balance as of June 7.
That reserve rose from $900 million reported on May 31. After retiring $1.5 billion in 2029 convertible notes for $1.38 billion, reserves cover about 6.3 months of dividends. JPMorgan said Strategy may need to rebuild reserves to ease concerns.
Bernstein analysts said STRC dividends remain covered by reserves and ATM liquidity. They stated, “MSTR has raised over a billion dollars in a week several times.” Strategy’s annual meeting will vote on shifting STRC dividends to twice-monthly payments.