“Strategy” acquired 705 Bitcoin for $75 million
for the eighth week in a row
“Strategy”, led by “Michael Saylor”, continued to strengthen its position
as the largest listed company holding bitcoins, acquiring an additional
705 bitcoins during the week ending June 1, 2025, for about $75 million.
This is the eighth consecutive weekly purchase, bringing the company's total
Bitcoin holdings to 580,955 Bitcoins, with a market value exceeding $60 billion.
The average cost of purchasing
the latter was $106,495 per Bitcoin, which means that the current market value
which exceeded $104,000, puts the company in front of
unrealized gains exceeding $20 billion.
“Strategy
financed the deal by selling shares in its funds, which included 353,511 shares of
STRK and 374,968 shares of STRF, with total revenues of about $74 million.
This step came despite
recent market fluctuations, as the price of Bitcoin witnessed a decline of
more than 4% within a week, after reaching its historical peak at about $112,000.
This decline came in light of
pressing economic and geopolitical factors, most notably the slowdown in trade
talks between the United States and China, and “Donald Trump”’s statements
regarding raising tariffs on steel imports
along with movements of exchange-traded funds (ETF).
“Michael Saylor” previously hinted at the purchase via a post on the X platform
showing the company's portfolio with a comment saying:
Orange is my favorite color.
In a clear reference to Bitcoin.
In an interview on the sidelines of the “Bitcoin 2025” conference in Las Vegas
“Saylor” confirmed that his company will not stop buying Bitcoin, noting that
access to the currency will become more difficult over time
which requires more efficient and bold purchasing moves.
“Saylor”'
s strategy has inspired many organizations, with more than 70 companies around
the world starting to list Bitcoin on their balance sheets, including “Twenty One”
backed by Tether, “Trump Media”, and ”GameStop”.
But these moves
- were not always welcomed by the market, as shares of “Trump
- Media” and ”GameStop” fell by 20% and 17%, respectively
- after announcing their Bitcoin-related strategies.
“Strategy” buys more Bitcoin: details
“Strategy”
led by co-founder and former CEO “Michael Saylor”
announced the acquisition of an additional 4,020 bitcoins
worth approximately $427 million,at an average price of $106,237 per bitcoin.
The deal was likely implemented early last week, coinciding with Bitcoin's rise to
record levels exceeding $109,000, indicating
a continued investment commitment even at high prices.
With this purchase
the company's total holding rises to 580,250 Bitcoins, purchased over a period of
approximately five years at a total cost exceeding $40.6 billion
with an average price of approximately $69,979.
Based on current prices of approximately $110,000, the market value of
the company's holdings is estimated at $64 billion, giving it
a theoretical profit of more than $23 billion.
Despite this strong performance
for the underlying asset, the company's stock (MSTR) did not reverse
the same trend, falling from its weekly peak of $420 to below $370
at the close of Friday's session, with a further 1% decline in post-closing trading.
This asymmetry raises questions about the market pricing of risks associated with
the company's approach based on the extensive use of leverage and linking its
financial balance to the movements of a highly volatile asset.
The announcement :
was accompanied by a striking hint from “Saylor” on his X :
account, in which he indicated that the company is buying Bitcoin with money that
it cannot afford to lose, which reflects a firm conviction in the long term of the
investment, even though it carries with it a high level of financial risk.