Strategy Acquires $110.2M of Bitcoin in Latest Buy

Strategy has acquired $110.2 million worth of Bitcoin as the price trades near its all-time high level.

According to a Monday US Securities and Exchange (SEC) filing, Strategy acquired 1,045 Bitcoin (BTC) at an average price of $105,426 per coin. The company now holds 582,000 BTC acquired for about $40.8 billion at an average price of around $70,086 per BTC.

The announcement follows Strategy co-founder and executive chairman Michael Saylor hinting at the purchase on June 8. The buy marks the ninth consecutive week that Strategy has acquired Bitcoin.

News of the latest purchase comes as Bitcoin approaches its all-time high. According to CoinMarketCap, Bitcoin traded at $107,640 at the time of writing, just 3.9% lower than the all-time high of about $112,000 reported in May.

Related: Metaplanet shares jump after $5.4B plan to buy Bitcoin

Strategy’s newest stock offering

The latest Bitcoin acquisition follows Strategy’s announcement of a $1 billion stock offering, which quadrupled its previous announcement of a $250 million raise. The company plans to use the proceeds to fund additional Bitcoin acquisitions and corporate expenses.

The stock offering issues 11.76 million shares of Strategy’s 10.00% Series A Perpetual Stride Preferred Stock for $85 per share. Following the deduction of expenses from underwriting and other dues, the firm expects to raise about $979 million.

Unlike previous fundraising rounds, this offering provides non-cumulative dividends of 10%, designed to appeal to institutional and professional investors seeking yield-generating opportunities.

An onslaught of copycats

Strategy — then still known as MicroStrategy — is a business intelligence company that pivoted to Bitcoin accumulation with an initial purchase of 21,454 BTC for $250 million in August 2020. Since then, it has accumulated over 2.75% of all the Bitcoin that will ever be mined.

The company’s market capitalization stands at $104.6 billion, up from the $1.2 billion reported in July 2020 before starting its Bitcoin accumulation. Its success story has inspired a long list of other companies to follow suit.

One particularly famous example is Metaplanet, often called “Japan’s MicroStrategy.” It recently became the world’s eighth-largest corporate holder of Bitcoin, utilizing the same tools as Strategy.

Similarly, France-based The Blockchain Group has added another 580 Bitcoin to its Bitcoin treasury, leading to a 225% surge in its stock price after pivoting to BTC accumulation in November.

Earlier this month, the Norway-based crypto exchange Norwegian Block Exchange saw its stock rise by over 138% in a day after announcing its intention to buy and hold Bitcoin.

Magazine: Baby boomers worth $79T are finally getting on board with Bitcoin