Sq Develops Acquisition of Bitcoin: Strategic Resumes the $43 Million BTC Buy
Michael Saylor said the Strategy had resumed buying Bitcoin after pausing purchases last week. The Bitcoin treasury company purchased around $43 million worth of 535 BTC, according to the latest filing of the company.
The most recent acquisition was conducted at an average purchase price of $80,340 per Bitcoin, which reaffirms their unwavering conviction in the long-term value proposition offered by the number 1-ranked crypto asset amongst all projects, even though markets remain extremely volatile.
The purchase follows the company’s suspension of Bitcoin purchases ahead of its earnings report on May 5. The suspension had prompted investor speculation as to whether Strategy might temper its headlong BTC buying strategy. Nonetheless, the latest purchase demonstrates that the business continues to be dedicated to adding further Bitcoin holdings.
Bitcoin strategy breached 818,000 BTC
With this latest purchase, Strategy has a total stockpile of 818,869 BTC. The company now holds more than $66 billion in Bitcoin, at current market prices. These positions were built up at a combined cost basis of $61.86 billion for the firm, with an average purchase price of $75,540 per coin according to company data.
This makes Strategy the single biggest corporate holder of Bitcoin in the world. The aggressive treasury strategy of the company is only piquing the interest of institutional investors and crypto market participants. These latest figures also illustrate just how closely the firm’s balance sheet is tied to the Bitcoin price, in many cases.
Furthermore, Michael Saylor disclosed that as of year-to-date, Strategy has delivered a 9.4% BTC Yield. This measure assesses the growth of Bitcoin ownership in relation to the implementation of a capital allocation strategy and is an indicator of successful long-term accumulation.
The purchase was presumably funded by an ATM stock offering.
The recent purchase of Bitcoin is estimated to have been made with funds from the proceeds raised pursuant to the Strategy’s at-the-market (ATM) stock offering program. The company disclosed that it raised around $82 million last week through stock sales tied to MSTR shares.
Those proceeds were sufficient to buy over 1,000 BTC at then-existing Bitcoin prices. So, the company did not engage these funds in Bitcoin purchases right away, and hence sparked speculation that it was only waiting for a better opportunity on the market. The 535 BTC acquisition just announced implies a portion of the stands from the cash machines have now been tendered for expanding the company’s crypto holdings.
Bitcoin Purchase Scale Drops Sharply
Even as Strategy has continued to buy Bitcoin, however, its acquisitions have been in much smaller quantities than before. The latest acquisition of $43 million in BTC comes as the company has reduced its Bitcoin acquiring activity by over 83% from previous peaks.
Strategy came into possession of around $255 million of Bitcoin on April 27, a comparatively paltry amount when compared to the enormous $2.54 billion worth of Bitcoin released in an announcement on April 20 [4]. This shrinking purchase size suggests that the company might be in a more conservative accumulation approach phase, and watching macro-market conditions.
However, Michael Saylor’s recent “Back to work” post on X and the traditional Orange Dots chart showing Strategy’s BTC purchases have already raised expectations for the next purchase announcement. That prediction was confirmed in today’s filing.
Conclusion
Strategy confirms yet another $43 million BTC purchase: buy the dip. The most recent Bitcoin buy from the company brings in another $43 million worth of BTC, confirming that the company is as committed to its long-term BTC accumulation path despite a temporary acquisition halt prior to earnings print.
The Michael Saylor-led firm continues its reign as the largest corporate Bitcoin holder in the world, with total holdings now sitting at 818,869 BTC valued at just over $66 billion. While the recent purchases are on a much smaller scale than the earlier multi-billion-dollar acquisitions, it certainly shows that the company is confident in continued growth for Bitcoin going forward.
With proceeds from its ATM stock offering and a 9.4% year-to-date BTC yield supporting the high-risk treasury, Strategy’s tactical aggressive approach is still making waves in the institutional sentiment around Bitcoin adoption.
