TL;DR
- Strategy recently purchased 6,220 Bitcoin for $739.8 million, raising its total Bitcoin holdings to 607,770 coins worth about $71.8 billion.
- This positions Strategy ninth among S&P 500 companies in cash reserves.
- The purchase was financed through sales of its common stock and multiple preferred stock programs, supporting an aggressive plan to acquire Bitcoin through 2027.
Strategy continues its steady accumulation of Bitcoin, acquiring 6,220 coins between July 14 and 20 at an average price of approximately $118,940 per Bitcoin. This latest buy brings their total Bitcoin stash to 607,770 coins, purchased for about $43.6 billion in total. With Bitcoin valued around $118,670 at the time, Strategy’s holdings imply unrealized gains close to $28.1 billion.
Funding Comes From Diverse Capital Sources
The company financed this significant purchase through a mix of capital markets activity, including the sale of over 1.6 million shares of its Class A common stock (MSTR) and multiple preferred stock offerings. These preferred stocks vary in yield and conversion features, giving investors flexible options. Strategy’s “42/42” capital plan aims to raise $84 billion through equity and convertible note offerings to fuel Bitcoin acquisitions over the next few years.
Rivaling Traditional Corporate Cash Reserves
Strategy’s Bitcoin treasury, valued at roughly $71 billion, now ranks ninth among the largest cash or cash-equivalent holdings of S&P 500 companies. Its Bitcoin reserve surpasses cash piles held by giants like ExxonMobil and approaches the liquidity of firms such as General Motors and Amazon. This comparison underscores Bitcoin’s growing role as a mainstream asset and store of value on corporate balance sheets.
Michael Saylor, Strategy’s executive chairman, has long championed Bitcoin as “digital property” with advantages over traditional cash holdings or government bonds. The company’s consistent weekly purchases, often funded through share sales and convertible debt.
Corporate Bitcoin Treasuries Gaining Momentum
Strategy’s approach has inspired a growing number of public companies to build Bitcoin treasuries. More than 140 firms now hold Bitcoin on their balance sheets, including notable players like Marathon Digital and Riot Platforms. Still, Strategy’s holdings remain the largest by far, accounting for nearly 3% of Bitcoin’s total supply.
Market analysts remain optimistic about the company’s prospects. TD Cowen recently raised Strategy’s price target from $590 to $680 per share, betting on Bitcoin’s price reaching $155,000 by the end of 2025. Following the latest Bitcoin acquisition, Strategy’s shares traded up nearly 2% in pre-market activity, signaling positive investor sentiment.
