Strategy Buys $101M Bitcoin, Reverses Recent Sale

Strategy (MSTR) purchased 1,550 Bitcoin for approximately $101.3 million between June 1 and June 7, reversing its first sale of the cryptocurrency since late 2022 [2, 3]. The move sent MSTR shares up 5.4% and coincided with a rebound in Bitcoin, which rose roughly 3% to trade around $63,700 after falling below $60,000 last week [2].

Strategy's Accumulation Resumes

The latest acquisition brings Strategy's total Bitcoin holdings to 845,256 BTC, acquired for approximately $64 billion, including fees and expenses [2]. This position represents more than 4% of Bitcoin's maximum 21 million token supply, making Strategy the largest corporate holder by a significant margin [2, 3]. The company's average acquisition price for its total holdings stands at $75,680 per Bitcoin, implying a paper loss of around $10.5 billion at current market prices [3].

The purchase was funded through at-the-market (ATM) sales of Strategy's Class A common stock, with the company selling approximately 1.41 million shares for about $181 million last week [2, 3]. A portion of these proceeds also increased the company's U.S. dollar cash reserves from $900 million to $1 billion [3]. This renewed buying follows a brief period of uncertainty after Strategy sold 32 Bitcoin for $2.5 million between May 26 and May 31, its first such disposal since late 2022 [2, 4]. The proceeds from that sale were earmarked for dividend payments on its STRC preferred stock [2, 3].

Market Reaction and Broader Sentiment

Strategy's decision to resume accumulation provided a boost to crypto-linked stocks, with Coinbase Global gaining 5.7%, Robinhood Markets rising 2.7%, and Circle Internet Group adding 2.5% [2]. Bitcoin itself recovered after trading near $73,700 before the prior sale, which saw it drop close to 20% to a low around $59,300 [3].

Analysts had described Strategy's earlier sale of 32 Bitcoin as "symbolic and voluntary" but noted it "spooked" markets [2, 3]. JPMorgan analysts suggested the company might need to rebuild its dollar reserves to reassure investors, especially after retiring $1.5 billion of convertible notes [2, 3]. The STRC preferred stock, which had been a primary funding vehicle, has not traded near its $100 par value since mid-May, shifting the funding reliance to equity issuance [3].

Despite the recent rebound, broader sentiment toward Bitcoin remains cautious. Recent outflows from spot Bitcoin exchange-traded funds (ETFs) reflect weakening investor demand [2]. Analysts at Ned Davis Research noted that these withdrawals suggest Bitcoin has struggled to establish support, even as investors seek exposure to risk assets elsewhere [2].

What to watch

• Bitcoin price levels: Monitor if Bitcoin can sustain its recovery above $63,000 and challenge previous resistance levels, particularly given ongoing ETF outflows [2].
• Strategy's funding strategy: Observe future funding mechanisms for Bitcoin acquisitions, especially the performance of its equity and preferred stock offerings [2, 3].
• Corporate Bitcoin adoption: Track further corporate acquisitions, as 198 public companies now hold Bitcoin, with Strategy remaining the dominant holder [2, 3].

Strategy's return to Bitcoin accumulation signals a continuation of its long-term strategy, but the broader market's reaction highlights the influence of its moves on investor sentiment, particularly amid ongoing scrutiny of Bitcoin ETF flows.