Strategy bought $2.5 billion worth of Bitcoin in a week — what it means for the market
Strategy, the company known as the largest corporate holder of Bitcoin, purchased 34,164 BTC worth $2.54 billion between April 13 and April 19. The average purchase price was $74,395 per coin. This is the company's largest deal in over a year, according to analysts at Lookonchain.
After this purchase, Strategy's total crypto reserve reached 815,061 BTC — approximately 4% of all Bitcoin that will ever be issued (21 million total).
How the company finances its purchases
The main source of funds for the latest purchase was the sale of STRC preferred shares — totaling about $2.2 billion. The issuance of MSTR common shares was partially used as well. Strategy aims to pay for Bitcoin acquisitions by selling preferred shares to avoid diluting the stake of common shareholders.
To boost investor interest, the company plans to change the dividend payment schedule for its Variable Rate Series A Perpetual Stretch preferred shares. If shareholders approve the initiative at the meeting on June 8, payments will be made twice a month instead of the current schedule.
Scale of accumulation
Since 2020, when Strategy began building its Bitcoin reserve, the company has spent $61.56 billion on purchasing the digital currency. The average purchase price per coin over six years is $75,527.
Currently, the company's unrealized loss is estimated at $317 million (-0.52%). This means that at the current Bitcoin price (around $74,395), the portfolio is slightly below breakeven.
Founder's stance
Company founder Michael Saylor stated that Strategy has no plans to stop accumulating Bitcoin, even if the asset's price continues to fall. According to him, the more capital raised, the more BTC can be bought — and this cycle will ultimately drive the asset's growth. Previously, Saylor said the company could withstand a Bitcoin price drop down to $8,000.
Key takeaways
- Strategy is the largest public corporate holder of Bitcoin, and its actions influence the market.
- The company uses stock sales to fund purchases, reducing balance sheet risks.
- The unrealized loss is minimal (-0.52%), indicating precise timing for purchases.
- A $2.5 billion purchase in a week is a significant volume that could support Bitcoin's price.
- Saylor remains optimistic even during price declines, strengthening investor confidence.
What this means for ordinary people
Large Bitcoin purchases by companies like Strategy create additional demand for the cryptocurrency, which can support or increase its price. This is not a guarantee of growth, but a signal that major players believe in Bitcoin's long-term value. For the average person, this means Bitcoin remains an asset that attracts institutional investors, and its price may be less volatile thanks to such large holders.
— Editorial Team
