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Strategy Adds $18M in Bitcoin on Fifth Anniversary of First Purchase as Price Jumps 5%

Finance Magnates

Cryptocoins News / Finance Magnates 16 Views

Michael Saylor’s Bitcoin accumulation strategy reached its five-year mark on Monday, with Strategy announcing a fresh purchase of 155 BTC for $18 million. The buy brings the company’s total holdings to 628,946 BTC, valued at nearly $76 billion, or about 3% of bitcoin’s fixed supply.

Five-Year Gains Outpace Bitcoin

Strategy adopted Bitcoin as its primary treasury asset in August 2020. Since then, its stock has gained more than 3,000%, averaging 100% annual returns, compared to Bitcoin’s 1,000% increase. The company funded its purchases through $46 billion in equity and credit, including $8.2 billion in convertible debt and four perpetual preferred stock offerings.

MSTR is now among the most actively traded U.S. equities. It records $4.4 billion in daily share volume, just behind Google’s $4.9 billion, and has $90 billion in open interest in options, second only to Google’s $99 billion. The company’s market cap stands at $112 billion.

Corporate Bitcoin Holdings Expand

Saylor’s approach has influenced other companies to adopt Bitcoin in their treasuries. Publicly listed firms now hold a combined 964,314 BTC, much of which is financed through capital raises following Strategy’s model.

At the time of publication, Bitcoin was changing hands above $120,000, representing a 1% increase in the past day and a 4.55% jump in the past week, according to CoinMarketCap data. Meanwhile, the second-largest cryptocurrency, Ethereum, has risen by 17% in the past week.

Related: Why Bitcoin Price Is Surging Today? Bulls Target $140K BTC as Crypto Rally Accelerates

In May, Bitcoin’s rally past the $110,000 mark prompted fresh buying from Strategy, the corporate Bitcoin holder led by Michael Saylor. The move came as the company faced pressure from legal challenges and insider share sales, which weighed on its stock performance.

Between May 19 and 23, Strategy purchased 4,020 Bitcoin for a total of $427.1 million. The average acquisition price was $106,237 per coin, placing the buy just days before Bitcoin reached its all-time high above $110,000 on May 22. The purchase extended Saylor’s policy of adding to holdings regardless of market levels.

This article was written by Jared Kirui at www.financemagnates.com.
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