Strategy announces the acquisition of $100M worth of Bitcoin
TL;DR Breakdown
- Strategy has announced a fresh purchase of 850 BTC worth about $100 million.
- The acquisition brings the company’s total Bitcoin holdings to 639,835 BTC.
- Saylor makes a case for more institutional investors entering the Bitcoin industry.
Michael Saylor’s Strategy has announced the acquisition of about $100 million worth of Bitcoin, adding to an already big balance sheet. Strategy, the world’s largest corporate Bitcoin holder, added 850 Bitcoin worth 499.7 million during the week ending Sunday, according to an announcement released by Michael Saylor on X.
In its statement, the company mentioned that it had filed the purchase with the United States Securities and Exchange Commission on Monday. The purchase was made at an average price of $117,344 per coin as Bitcoin briefly rose to a multi-week high above $117,000. The purchase also comes days after the Federal Reserve announced that it had cut interest rates for the first time this year. During the press conference, the Fed announced a 25 basis point interest cut.
Strategy adds 850 BTC to its current holdings
The acquisition brings Strategy’s entire Bitcoin stash to 639,835 BTC. The company spent $47.3 billion to acquire the entire cache at an average price of $73,971 per coin. The latest Bitcoin purchase continued a trend of modest buys, highlighting a slowdown compared with the large purchases it made earlier on.
So far in September, Strategy has acquired 3,330 Bitcoin, a sharp drop from the 7,714 BTC it bought in August, a figure that is in itself down about 75% from the 31,466 BTC the company purchased in July. Saylor, who is known for his commitment towards purchasing more units of the asset, has made some remarks about the volatility Bitcoin witnessed in the past month amid growing institutional adoption.
In an interview with Bloomberg, Saylor mentioned that he has no plans to sell his Bitcoin, despite the fact that his company’s holdings have grown to hit an unrealised profit of about $4 billion. “I’m going to be buying the top forever. Bitcoin is the exit strategy,” Saylor said, speaking to Bloomberg when asked if his firm would sell its 190,000 BTC stash — worth around $9.88 billion at current prices.
Making a case for Bitcoin, Saylor claimed that the digital asset is superior to golf, the S&P 500, and real estate, despite the individual asset class having a better market capitalization than Bitcoin. “We believe capital is going to keep flowing from those asset classes into Bitcoin,” he said. “Bitcoin is technically superior to those asset classes. And that being the case, there’s just no reason to sell the winner to buy the losers.”
Saylor to attend the US government roundtable on the BITCOIN Act
Similarly, Saylor also talked about more participants entering the Bitcoin space. He mentioned that the cost of Bitcoin becoming appealing to more institutional investors may come at the cost of the thrill that attracts some retail investors. “The conundrum is, well, if the mega institutions are going to enter, if the volatility decreases, it is going to be boring for a while, and because it’s boring for a while, people’s adrenaline rush is going to drop,” he said.
While Strategy has slowed down its Bitcoin purchases over the last two months, other companies have ramped up their purchases, moving aggressively in the market. For instance, Japanese firm Metaplanet has been moving aggressively in the market, adding 5,419 BTC to bring its total holdings to around 25,555 BTC on Monday.
Strategy’s latest Bitcoin purchase comes as Saylor prepares to attend the US government roundtable to advance the US Bitcoin reserve bill known as the Bitcoin Act on Tuesday. The bill, originally introduced by Senator Cynthia Lummis in July 2024, proposes that the US government buy 200,000 Bitcoin every year over the course of five years to bring the total acquisition to around 1 million.
