Global Bitcoin "corporate whale" Strategy (formerly MicroStrategy) has made another significant purchase. According to an 8-K filing with the SEC this week, the company bought 705 BTC between May 26 and June 1, spending $75.1 million** at an average price of **$106,495 per Bitcoin.
This brings Strategy’s total holdings to 580,955 BTC—worth over $60 billion** at current prices. Since adopting its Bitcoin-focused treasury strategy in 2020, the company has invested approximately **$40.7 billion (including fees and costs), with an average cost basis of $70,023 per BTC**. Its unrealized gains now stand at **$19.3 billion, rivaling the market cap of major corporations.
Notably, Strategy now controls 2.8% of Bitcoin’s total 21-million supply, cementing its position as the largest corporate holder.
How Strategy Funds Its Bitcoin Purchases
The latest acquisition was financed through the issuance of perpetual preferred shares (STRK and STRF):
- Raised $36.2 million via 353,511 STRK shares
- Raised $38.4 million via 374,968 STRF shares
The company still has $20.68 billion** and **$2.05 billion remaining in STRK and STRF issuance capacity, respectively. Notably, it did not tap into its $18.63 billion available ordinary shares (MSTR) for this purchase.
Why the Slower Buying Pace?
Compared to the previous week’s 4,020 BTC purchase, this round’s volume was significantly smaller. Analysts point to two key factors:
- Shrinking MSTR Premium: Strategy’s stock (MSTR) trades at a premium to its Bitcoin holdings. As this premium narrows, the company becomes more cautious about equity-funded purchases.
- Rising Competition: With over 75 companies now holding Bitcoin (including Trump Media, GameStop, and Japan’s Metaplanet), institutional demand is squeezing available supply.
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Global Corporate Bitcoin Adoption Accelerates
Last week alone saw major announcements:
- Trump Media: Raised $2.3 billion in private funding for Bitcoin allocations.
- GameStop: Disclosed a $497 million BTC purchase (4,710 coins).
- Metaplanet: Added 1,088 BTC (total: 8,888 BTC).
Bernstein predicts corporate investments could inject $330 billion into Bitcoin within five years—a potential price catalyst.
FAQ
Q: How does Strategy profit from Bitcoin?
A: Through long-term appreciation and leveraging its stock (MSTR) as a Bitcoin proxy.
Q: Why are companies buying Bitcoin?
A: Hedge against inflation, treasury diversification, and exposure to a scarce asset.
Q: What’s the risk for corporate holders?
A: Bitcoin’s volatility could impact balance sheets if prices drop below their average cost basis.
Disclaimer: This content is for informational purposes only and does not constitute financial advice.