Key Takeaways
- • Strategy, the world's largest corporate Bitcoin holder led by Michael Saylor, bought 950 Bitcoin for nearly $76 million over the past week, according to its latest financial disclosure, lifting total holdings to 846,000 Bitcoin.
- • Bitcoin rose more than 6% in 24 hours to nearly $86,000, and Strategy shares climbed nearly 9% to $167.
- • Strategy spent $174 million repurchasing its STRC dividend-paying preferred shares, which also reduces the company's future payments to investors.
- • Strategy holds roughly 4% of total Bitcoin supply, and its stock functions as a proxy for the cryptocurrency, amplifying volatility in both directions.
- • The rally followed a mid-August U.S. Treasury announcement to double purchases of older long-term government bonds and a Federal Reserve quarter-point rate hike on Sept. 16, with Bitcoin recovering after an initial dip to about $75,600.
Summary
Strategy, the world's largest corporate Bitcoin holder, bought 950 Bitcoin for nearly $76 million over the past week, according to its latest financial disclosure. The purchase was the company's first Bitcoin acquisition in roughly three weeks and lifted its total holdings to 846,000 Bitcoin. The buy coincided with Bitcoin surging more than 6% over 24 hours to nearly $86,000, and Strategy's shares rose nearly 9% to $167. The company also spent $174 million repurchasing STRC, its dividend-paying preferred shares, which helped support the stock and reduced its future payments to investors.
Bitcoin's recovery has extended from a yearlong bear market. The cryptocurrency fell as low as $58,000 in June, roughly 53% below its $125,000 peak last October. Strategy, which holds around 4% of total supply, has been directly exposed to that volatility. Founder Michael Saylor has long championed a "never sell your Bitcoin" approach, yet the company has sold Bitcoin four times in the past four months. Strategy created STRC last year to raise cash from investors for additional purchases as Bitcoin's decline strained its finances. As prices rebounded over the past month, the company resumed buying, making two purchases.
Chris Beauchamp, chief market analyst at IG Group, told Fortune that the return to buying suggests Strategy sees enough support for the recovery to resume accumulation. He said the smaller latest purchase, relative to earlier acquisitions, does not necessarily signal concern and may reflect gradual accumulation as prices climb.
Bitcoin's renewed buying pressure emerged in mid-August after the U.S. Treasury announced it would double purchases of older long-term government bonds. Beauchamp said worries about government bonds, rising yields, and inflation revived Bitcoin's appeal as an alternative asset after months in which investors favored faster-moving themes such as artificial intelligence. The Federal Reserve, under Chair Kevin Warsh, announced a quarter-point rate increase on Sept. 16. Bitcoin initially fell to about $75,600, erasing earlier gains that month, but the decline proved short-lived and the cryptocurrency resumed its ascent once the widely expected hike was absorbed.
Bitcoin's recovery has extended from a yearlong bear market. The cryptocurrency fell as low as $58,000 in June, roughly 53% below its $125,000 peak last October. Strategy, which holds around 4% of total supply, has been directly exposed to that volatility. Founder Michael Saylor has long championed a "never sell your Bitcoin" approach, yet the company has sold Bitcoin four times in the past four months. Strategy created STRC last year to raise cash from investors for additional purchases as Bitcoin's decline strained its finances. As prices rebounded over the past month, the company resumed buying, making two purchases.
Chris Beauchamp, chief market analyst at IG Group, told Fortune that the return to buying suggests Strategy sees enough support for the recovery to resume accumulation. He said the smaller latest purchase, relative to earlier acquisitions, does not necessarily signal concern and may reflect gradual accumulation as prices climb.
Bitcoin's renewed buying pressure emerged in mid-August after the U.S. Treasury announced it would double purchases of older long-term government bonds. Beauchamp said worries about government bonds, rising yields, and inflation revived Bitcoin's appeal as an alternative asset after months in which investors favored faster-moving themes such as artificial intelligence. The Federal Reserve, under Chair Kevin Warsh, announced a quarter-point rate increase on Sept. 16. Bitcoin initially fell to about $75,600, erasing earlier gains that month, but the decline proved short-lived and the cryptocurrency resumed its ascent once the widely expected hike was absorbed.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.
