Michael Saylor’s Strategy Buys Another $100M in Bitcoin

Strategy buys $100M in Bitcoin, expanding holdings to 846,842 BTC while strengthening reserves, liquidity, and long-term corporate Bitcoin accumulation strategy.

Strategy, led by Michael Saylor, has added more Bitcoin to its corporate treasury. The company purchased 1,587 BTC between June 8 and June 14 for about $100 million. Therefore, Strategy has maintained its long-term Bitcoin accumulation strategy even in the face of market volatility.

The Bitcoin was bought at an average price of $63,024 per coin. Furthermore, the company now has a total of 846,842 BTC. Since the start of Bitcoin purchases in 2020, Strategy has invested approximately $64.07 billion in the cryptocurrency.

How Did Strategy Fund the New Bitcoin Purchase?

The purchase was made under Strategy’s at-the-market (ATM) equity program. The company sold about 1.73 million shares of its Class A stock (MSTR). This resulted in almost $209 million in total proceeds.

From this amount, Strategy used $100 million to buy Bitcoin. The remaining funds were added to its reserves. Therefore, the company improved both its Bitcoin position and its cash liquidity at the same time.

Also, Strategy raised its USD reserve by $100 million. This raised the total cash on hand to approximately $1.1 billion. This reserve is used to support the company’s operations, debt payments, and preferred share dividends, the company said. This means that Strategy does not have to sell Bitcoin for short-term needs.

Related reading: Saylor’s Strategy Buys 1,550 BTC, Holdings Hit 845,256 | Live Bitcoin News 

What Does Strategy’s Bitcoin Position Look Like Today?

Bitcoin is steadily increasing in value for Strategy. The company now has a total of 846,842 BTC. Furthermore, the average price of a Bitcoin transaction per holding is $75,656.

The company’s total investment in Bitcoin is approximately $64.07 billion. Furthermore, Strategy now holds over 4% of the total supply of 21 million Bitcoin. Hence, it continues to be a significant player in the Bitcoin market.

Moreover, the reserve of the stronger USD provides financial stability. It helps alleviate stress on the company when the market is volatile. This means that Strategy can maintain its Bitcoin strategy without having to sell its underlying assets.

What Is the New Bitcoin Risk Metric Introduced by Saylor?

Michael Saylor also unveiled a new metric called CEBE BPS. This tool calculates Bitcoin exposure, taking into account debt and preferred stock obligations. So, it provides a more accurate representation of actual treasury risk.

Bitcoin should be viewed along with liabilities, Saylor said. Moreover, this enables companies to know their actual financial risk, he added. This means that companies can more effectively navigate long-term Bitcoin strategies.

More companies are implementing Bitcoin treasury models, and the announcement arrives at a time when they are increasingly doing so. It also introduces risk and capital structure issues, however. Therefore, better measurement tools are becoming more important for investors.

Previously, Strategy sold some Bitcoin to satisfy its dividend obligations. But the company’s recent acquisition and increased cash cushion are signs of ongoing confidence. Furthermore, it indicates a high level of accumulation as opposed to trading.

What Does This Mean for Strategy’s Long-Term Bitcoin Plan?

Strategy continues to hold on to Bitcoin. The company continues to purchase even during periods of market uncertainty. Hence, it views Bitcoin as a long-term treasury asset and not as a short-term investment.

Furthermore, it has a growing cash reserve that gives it financial flexibility. It helps the company manage debt and expenses without having to sell bitcoins. Consequently, Strategy will be able to continue with its long-term holding strategy.

Overall, Strategy’s recent $100 million Bitcoin acquisition further solidifies its status as the biggest corporate Bitcoin holder. As reserves increase, new risk metrics are introduced, and consistent accumulation continues, the company keeps doubling down on its Bitcoin-centric strategy.

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