Bitcoin treasury firm rebounds with $101M acquisition funded through stock offerings
Strategy has already more than made up for last week’s 32 BTC sale. The Bitcoin treasury firm announced a new major acquisition of 1,550 BTC for approximately $101 million, bringing its total Bitcoin reserves to a new record of 845,256 BTC.
The purchase was funded through at-the-market stock offerings by MSTR, Strategy’s parent company. Alongside the Bitcoin acquisition, Strategy added $100 million to its USD reserve, bringing the total value of that reserve to $1 billion. The USD reserve was established last year to create a buffer for timely dividend payments regardless of market conditions.
Michael Saylor, Strategy co-founder and chairman, characterized the timing as opportune. “A good time to add more dots,” Saylor said, referencing the firm’s long-term accumulation strategy. Strategy has been accumulating Bitcoin since late 2020.
The acquisition comes as Bitcoin has declined 12% over the last seven days, trading at $63,400 at the time of writing. US Bitcoin spot ETFs experienced their fourth consecutive week of negative netflows, with $1.72 billion in net outflows last week. The prior week’s 32 BTC sale shocked the market and caused a major price drawdown due to sentiment impact.
Phong Le, Strategy CEO, reaffirmed the firm’s commitment to Bitcoin accumulation. “Our corporate strategy is to increase net Bitcoin and Bitcoin per share over time. Rumors otherwise are just rumors,” Le said.
Strategy has been relying on its USD reserve to pay dividends amid the current market downturn. The firm’s ability to fund acquisitions through equity offerings while maintaining dividend capacity reflects its dual-asset approach to treasury management. The new record Bitcoin holdings position Strategy as one of the largest corporate holders of the asset.
