American software and business intelligence company Strategy added 34,164 Bitcoins to its vault in the last week. The company’s founder and chairman, Michael Saylor, is known for the moves that have changed the approach of institutional investors to Bitcoin, especially in the last four years. The company is known as the institution with the largest public Bitcoin portfolio.
Details of the new purchase
In the official notification made at the beginning of the week, it was stated that Strategy made this purchase for an average of $ 74,395 and cost a total of $ 2.54 billion. The company’s current total Bitcoin stock reached 815,061 BTC. This huge amount has been raised to date, spending $61.56 billion, at an average cost of $75,527.
Considering Bitcoin is currently trading at around $75,000, Strategy’s holdings are at par by the company’s own calculation. As the institution that holds the most Bitcoin among public companies, Strategy started its first major purchase in 2020. The decision to keep Bitcoin as a strategic asset on its balance sheet also had wide repercussions in the corporate investment world.
According to the company’s statement, $2.2 million in financing for Bitcoin purchases during the week was provided from the sale of preferred stock, while an additional $366 million was obtained from an ordinary stock offering.
Financing model and market reaction
To finance these acquisitions, the company first raised $2.2 million in preferred stock called Stretch. In addition, $366 million in proceeds were reported to have been raised through the public sale of shares. The company’s fundraising through different financing methods is followed closely, especially by institutional investors and analysts.
Following the statements, Strategy shares decreased by more than 2.5 percent. This decline was particularly notable in pre-market transactions. It is thought that major changes in the company’s crypto assets, as well as macroeconomic factors, may be effective in the depreciation of the share price.
The rise of institutional Bitcoin strategy
Strategy has stood out with its policy of keeping Bitcoin on its balance sheet as a reserve asset since 2020. This strategy that the company has implemented to date has enabled many other publicly traded companies to adopt a similar path. The amount of BTC held by the institution is among the important data referenced in global crypto markets.
The institution’s continuous Bitcoin investments are closely monitored both in the crypto industry and in the traditional finance world. The orientation of institutional investors and the diversity of financial instruments play an important role in determining trends in the sector.
