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Strategy Surpasses 762000 BTC With New Funding Approach

7h05 ▪ 4 min read ▪ by Luc Jose A.
Getting informed Bitcoin (BTC)
Summarize this article with:

Strategy once again strengthens its position in bitcoin, despite a hesitant market. The company led by Michael Saylor has just announced the purchase of 1,031 additional BTC, extending a series of acquisitions started at the beginning of the month. This operation takes place in a context marked by the rise of institutional players and increased pressure on prices. It thus renews questions about the accumulation strategy adopted and its implications for market balance.

A Strategy executive observes a mountain of stacked Bitcoins, with some still being added, the number 1031 subtly integrated into the structure.

In Brief

  • Strategy strengthens its accumulation strategy with the purchase of 1,031 Bitcoins for 76.6 million dollars.
  • The company raises its reserves to 762,099 BTC, despite a latent loss of about 7 %.
  • A series of massive purchases in March confirms sustained investment momentum.
  • Strategy faces increasing competition from Bitcoin ETFs, notably BlackRock.

Strategy continues its purchases despite an uncertain market

Strategy acquired 1,031 bitcoins for 76.6 million dollars, according to an 8-K filing submitted to the SEC. The operation was conducted at an average price of 74,326 dollars per BTC, a level below the overall average cost of its acquisitions, set at 75,694 dollars.

The company specifies that these purchases were funded by the sale of common shares. This acquisition now brings its holdings to 762,099 BTC, at a total cost of about 57.69 billion dollars.

  • In March, Strategy bought 41,362 BTC for about 2.93 billion dollars ;
  • Bitcoin is currently trading around 70,895 dollars ;
  • The company shows an unrealized loss of about 7 % ;
  • The current valuation of its holdings reaches about 54 billion dollars.

These elements reflect a progressive accumulation strategy, regardless of short-term fluctuations.

A shift in financing and pressure from institutional players

The financing of this last acquisition is based exclusively on the sale of common shares, a notable change compared to previous operations.

During its purchase of 22,337 BTC (about 1.6 billion dollars), Michael Saylor’s company had largely mobilized its preferred stock product STRC, which generated nearly 1.2 billion dollars, or about 75 % of the total financing. This inflection in financing sources reflects an adjustment in capital management and in investor exposure to its Bitcoin strategy.

At the same time, Strategy’s position fits into an increasingly competitive institutional landscape. The company’s holdings remain slightly below those of BlackRock’s iShares Bitcoin Trust (IBIT) fund, which holds about 785,300 BTC on behalf of its clients. More broadly, American spot Bitcoin ETFs collectively hold nearly 1.3 million BTC, or about 6.1% of the total supply capped at 21 million.

The simultaneous evolution of these strategies reveals a market structured by players capable of absorbing significant volumes. Strategy’s continuous accumulation, despite temporarily negative performance, contrasts with the diversification logic of ETFs. This dual movement could influence market liquidity, price formation, and the role of bitcoin in company balance sheets and institutional portfolios in the coming months.

Strategy continues its accumulation at a sustained pace, despite a pressured market and increased institutional competition. This dynamic fits into a key phase for the company, now on the verge of recording its second best quarter of bitcoin acquisition. It remains to be seen whether this strategy will strengthen its position or increase its exposure to bitcoin cycles.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.