Strategy (MSTR) Resumes Bitcoin Purchases After Selling Off, Buys 1,550 BTC For $101 Million
Strategy (MSTR) returned to the bitcoin market this week, buying 1,550 BTC for about $101 million – its first acquisition since the controversial sale of 32 bitcoins drew scrutiny from investors and analysts. The company disclosed the purchase in an 8-K filing with the Securities and Exchange Commission on Monday morning.
Executive Chairman Michael Saylor confirmed the purchase on social media, saying that Strategy’s total bitcoin reserve now stands at 845,256 BTC, which was raised just under $64 billion at an estimated price of 75,680 per coin. The latest tranche was bought at an average of $65,332 per bitcoin — about $10,000 less than the company’s cost basis, meaning the overall position has a paper loss of about $10.5 billion at current rates.
The acquisition was financed through the sale of Class A common stock. The strategy sold 1,409,600 shares of MSTR last week, generating approximately $181 million. Part of that profit funded the purchase of bitcoin while the rest pushed the company’s US dollar reserves from $900 million to $1 billion – a move analysts say was needed to restore the institution’s confidence.
The strategy returns to buying following the chaos. On June 1, the company disclosed that it sold 32 BTC between May 26 and May 31 for an estimated $2.5 million – its first bitcoin sale since late 2022. The reserve was intended to fund a dividend payment on its STRC preferred stock.
Although small in size, the disclosure shook the markets. Bitcoin was trading near $73,700 before the announcement; it fell 20%, falling to around $59,300 before recovering above $63,000 over the weekend.
Shares of the strategy rose 6% in the market.
The strategy ‘spread’ the markets
Analysts at JPMorgan described the sale as “symbolic and voluntary” but said it was “recklessly playing” the markets. They noted that after Strategy agreed to retire $1.5 billion worth of zero-coupon 2029 convertible notes at about 92 cents on the dollar, the dollar reserves covered about 6.3 months of recommended dividend payments — raising questions about the company’s liquidity crunch.
The Strategy’s preferred STRC – a variable rate, cumulative instrument offering an annualized rate of 11.5% – has been the main vehicle for bitcoin’s rally in recent weeks. But STRC hasn’t traded near its $100 level since mid-May, putting it aside as a funding option three weeks ago. Monday’s purchase is subject to equity release.
As of June 7, approximately $25.96 billion worth of MSTR shares remain available under the Strategy’s current ATM plan. The firm also expanded its ATM plans to include up to $21 billion of MSTR shares, $21 billion of STRC preferred stock, and $2.1 billion
The strategy holds more than 4% of the bitcoins fixed 21 million supply cap, a position that surpasses all company owners. Bitcoin treasury company Strive announced on Monday that it bought 32 BTC, bringing its total to 19,032 BTC with an estimated value of $1.15 billion – the chairman of Strive made as a direct response to the amount Strategy sold last week.
According to Bitcoin Treasuries data, 198 public companies now use some form of bitcoin acquisition model. The top company owners behind the Strategy include Twenty One (43,514 BTC), Metaplanet (40,177 BTC), MARA (35,303 BTC), Bitcoin Standard Treasury Company (30,021 BTC), and Bullish (24,300 BTC).
