Home Strategy Buys 4,603 Bitcoin For $370M, Takes Holdings To 845,050 BTC

Strategy Buys 4,603 Bitcoin For $370M, Takes Holdings To 845,050 BTC

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Strategy Buys 4,603 Bitcoin For $370M, Takes Holdings To 845,050 BTC
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Strategy has bought another 4,603 Bitcoin for about $370 million, taking its total Bitcoin holdings to 845,050 BTC. The purchase, made at an average price of $80,318 per Bitcoin, is the company’s first major Bitcoin acquisition in about two months.

Strategy said the purchase was funded largely through proceeds from a recent sale of its MSTR common shares. The company now has an aggregate $63.3 billion invested in Bitcoin, with an average purchase price of $75,413 per BTC.

The latest purchase was disclosed in a recent filing with the US Securities and Exchange Commission. It marks a return to large-scale Bitcoin buying for Strategy, which had last added to its holdings in mid-June. At that time, the company purchased 1,587 BTC for roughly $100 million.

Michael Saylor, co-founder and executive chairman of Strategy, had already hinted that something was coming. Over the weekend, he posted the short message “We’re Back” on X. Saylor has often used such posts to signal Strategy’s Bitcoin activity before formal announcements.

The company financed the latest acquisition with net proceeds from the sale of about 602 million MSTR common shares. Strategy also said it set aside $30 million to strengthen its US dollar cash reserves and used $151.8 million to buy back its perpetual preferred STRC stock.

The market reaction was relatively muted. MSTR rose less than 1% in pre-market trading on Monday, recovering slightly after falling more than 7% on Friday. Strategy’s STRC preferred stock also gained 0.44% to $97.33. However, the stock remained below its $100 target par value.

That matters because STRC is an important part of Strategy’s financing strategy. When the preferred stock trades below par, raising fresh capital through further sales can become more difficult. The company may then need to offer a higher dividend rate to attract investors and support the share price. Strategy recently increased STRC’s annual dividend rate to 12%.

The company has also said it can sell some of its Bitcoin to help fund dividends if necessary. It reported selling 32 BTC in June, its first Bitcoin sale since 2022.

Strategy, formerly known as MicroStrategy, has built its identity around holding Bitcoin as a major treasury asset. With 845,050 BTC, it remains by far the largest publicly traded corporate Bitcoin holder, making every major purchase closely watched by the crypto market.

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Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

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