Strategy purchased 1,550 bitcoins for approximately $101 million, increasing its total assets to 845,256 BTC. The company’s Chairman Michael Saylor announced the development on Monday. Strategy is known as a US-based software company, formerly known as MicroStrategy, which stands out with its heavy holding of bitcoin on its balance sheet.
The purchase came after a sharp price drop
The latest purchase comes after bitcoin fell nearly 15% last week. During this period, the price briefly broke below $60,000, then rose above $62,000 again. According to the information in the news, this decline came, at least in part, after Saylor sold 32 bitcoins on June 1.
According to Michael Saylor’s statement on Monday, Strategy purchased 1,550 more bitcoins, increasing its total bitcoin holdings to 845,256 BTC.
This transaction was the first purchase after the company’s bitcoin sale. Thus, Strategy both increased the amount of bitcoin in its reserve and took steps to strengthen the liquidity in its balance sheet.
Cash reserves also increased
The company also announced that it increased its reserves in US dollars by $100 million, bringing its total cash assets to $1 billion. $181 million of common stock was issued during the period to finance both the purchase of bitcoin and the increase in cash reserves.
| Pen | Amount |
|---|---|
| Last bitcoin purchase | 1,550 BTC |
| Purchase price | $101 million |
| Total bitcoin assets | 845,256 BTC |
| Total cash reserve | $1 billion |
| share issuance | $181 million |
Purchasing cost was below the company average
The last purchase was made at an average price of $65,332 per bitcoin. This figure was below Strategy’s overall average acquisition cost to date of $75,680. The total acquisition cost of the 845,256 BTC held by the company is just under $64 billion.
The company made the last purchase at an average price of $65,332 per bitcoin; this level was below Strategy’s overall average purchase price of $75,680.
The disclosed data showed that Strategy continued to accumulate bitcoin during the period of price fluctuations and did this together with the cash reserve increased by the issuance of shares.
