Summary
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The strategy significantly increases its Bitcoin holdings by purchasing 22,048 BTC for $1.92 billion, reaffirming its commitment to Bitcoin accumulation.
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The purchase was financed through the sale of company stock, indicating continued investor confidence in Strategy’s Bitcoin-focused investment approach.
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Despite this large purchase, the broader Bitcoin market remains in a phase of uncertainty and range-bound trading, with no immediate trigger of a bull market observed.
Strategy, under its ongoing Bitcoin buying strategy, has made another significant investment, acquiring 22,048 BTC worth over $1.92 billion.
The company, known for its sustained Bitcoin acquisition strategy, has added a further 22,048 BTC to its holdings.
Michael Saylor’s firm is leveraging various financial tools, such as STRK and newly issued preferred stock, to generate capital for these continuous Bitcoin purchases.
Michael Saylor, the company’s executive chairman, announced this latest acquisition.
Saylor Underscores Bitcoin Commitment
Michael Saylor is reaffirming his commitment to consistently increasing Strategy’s Bitcoin holdings.
The recent market conditions have enabled the company to buy Bitcoin at advantageous prices, facilitating the servicing of its debt, convertible notes, and dividend-paying stocks.
Strategy’s latest purchase follows smaller Bitcoin acquisitions by entities like MARA Holdings and Metaplanet.
These combined purchases are increasing the Bitcoin reserves held by corporate treasuries and government-related wallets, which currently stand at 3.11 million BTC.
This new acquisition occurred even amid expectations of a slower trading environment.
The strategy has been increasing its buying pace recently, starting with a smaller test purchase of just over 100 BTC, followed by a larger acquisition exceeding 6,000 BTC.
This most recent buy is among the largest since November 2024, when the company routinely bought over 20,000 BTC weekly.
Strategy obtained this recent batch of BTC at an average price of $86,969 per coin. After this expansion, the company’s total Bitcoin holdings have reached 528,185 BTC.
The average purchase price across all acquisitions is $67,458 per BTC, representing a total investment of $35.63 billion.
This recent purchase took place during a volatile period for the Bitcoin market, between March 24 and March 30.
Throughout this timeframe, Bitcoin recovered to a higher trading range but experienced renewed price weakness over the weekend.
During the same period, March 24 to March 30, Strategy also divested $1.2 billion worth of its MSTR common stock and $18.52 million in STRK convertible stock.
The strategy has not yet disclosed information regarding the sale of Strife (STRF) shares, estimated at $711.12 million.
Cumulatively, the proceeds from these stock sales are equivalent to the Bitcoin purchases, illustrating the strategy’s strategy to actively convert more fiat currency into Bitcoin.
Strategy’s latest funding was secured through a public offering of 8.5 million STRF shares, carrying a 10% yield and priced at $85 per share in the offering.
The rapid fundraising capability highlights ongoing investor confidence in Strategy’s Bitcoin-centric approach and sustained demand for investment vehicles that provide proxy exposure to Bitcoin.
Strategy’s Buys Yet to Ignite Broader Market Surge
Following the announcement of this large purchase, Bitcoin traded around $82,068.54 after another day characterized by significant liquidations of leveraged long positions.
MSTR shares also declined to $289.41, mirroring Bitcoin’s price fluctuations.
Despite the considerable purchase volume, reminiscent of more bullish phases for Bitcoin, BTC remains at a critical juncture, influenced by positions in the derivatives market.
The recent Strategy purchase is still largely viewed as an individual event, while investors are awaiting broader market indicators of a potential bull run.
Strategy’s latest action is in line with a broader trend of Bitcoin being considered as a reserve asset.
Currently, the Bitcoin network is observing very low on-chain transaction activity, with transaction fees remaining under $1 even for expedited transfers.
Bitcoin network activity has decreased to around 554,000 daily active wallets, as trading is primarily driven by derivatives markets with limited need for actual coin movement.
Corporate Bitcoin treasuries remain relatively modest, with only 22 identified entities holding wallets with over 1,000 BTC.
In total, approximately 2,041 addresses hold over 1,000 BTC, some of which belong to unidentified parties and older, legacy wallets.
Only 94 entities hold over 10,000 BTC, following recent months of selling.
With the recent shifts in ownership concentration, Strategy’s substantial Bitcoin reserve is becoming an increasingly significant factor in reducing the available Bitcoin supply.
While many large holders (whales) are keeping their Bitcoin holdings inactive, these coins still represent potential sell pressure, as whales frequently take profits. Currently, Bitcoin has returned to range-bound trading with volatility, incentivizing whales to revert to a strategy of long-term holding.
Also Read: US Senator Invests $600,000 in Bitcoin Through ETF
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
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