Key Insights:
- Strategy adds 1,550 BTC for $101.3M, increasing its holdings to 845,256 BTC.
- The firm raised its dollar reserve to $1B while funding purchases through share sales.
- Bitcoin traded below Strategy’s average cost as reserves topped 845,000 BTC.
Strategy added 1,550 Bitcoin to its balance sheet between June 1 and June 7. The purchase cost $101.3 million, with an average price of $65,332 per coin.
The move lifted the company’s total Bitcoin reserve to 845,256 BTC. It also came shortly after the firm reported a small Bitcoin sale. That had raised questions about future holdings.
The latest update showed another balance sheet change. Strategy increased its U.S. dollar reserve by $100 million to $1 billion. The company said the reserve supports preferred-stock dividends and interest payments.
The higher cash balance followed outside concerns about whether a smaller buffer could pressure future Bitcoin use.
Strategy Expands Bitcoin Reserve After Small Sale
The new purchase followed a short period of selling activity. Strategy sold 32 BTC between May 26 and May 31. That sale raised about $2.5 million and marked its first reported Bitcoin sale since December 2022.
The disposal represented only 0.0038% of the company’s Bitcoin holdings. Still, it drew attention because Strategy has long reported regular Bitcoin accumulation. Afterward, Michael Saylor wrote that it was “a good time to add more dots.” However, the post did not confirm any purchase size or timing.
The company later disclosed the 1,550 BTC acquisition in its latest filing. That disclosure showed the firm returned to buying during the following week. As a result, its Bitcoin reserve moved further above 845,000 BTC.
The purchase also came as Bitcoin traded below the company’s average acquisition cost. Strategy said it has spent about $63.97 billion on its total Bitcoin holdings. Its average purchase price stands at $75,680 per coin.
Strategy Share Sales Fund Latest Bitcoin Purchase
Strategy said it funded the latest Bitcoin purchase through its at-the-market share program. During the week, the company sold 1,409,600 MSTR shares. Those sales raised $181 million after commissions.
The filing showed no sales of STRC, STRK, STRD, or STRF preferred stock during the period. It also showed a large remaining capacity under existing programs. Strategy had about $25.96 billion available under its MSTR programs. In addition, it had $17.51 billion available under the STRC program.
The company’s dollar reserve also increased during the reporting period. Strategy said the reserve reached $1 billion as of June 7. That figure included expected proceeds from ATM share sales that had not settled by that date.
The reserve remains tied to company obligations. Strategy created that reserve to support preferred-stock dividends and interest payments. JPMorgan had earlier raised concerns that a smaller reserve could increase pressure to use Bitcoin for future payments.
Market Value Sits Below Cost Basis
Bitcoin traded near $63,600 during the latest update. At that price, Strategy’s 845,256 BTC position was worth about $53.8 billion. The stated market value sat below the company’s reported cost basis.
The latest purchase also appeared alongside comments from Saylor about Bitcoin’s future direction. He described four groups that could influence the network. He said Maximalists would focus on monetary purity. Capitalists would expand Bitcoin through financial markets.
Saylor also said Technologists would focus on network upgrades. Meanwhile, Fundamentalists would defend Bitcoin’s original design. His comments came as Strategy continued to adjust both its Bitcoin reserve and dollar reserve.
