Key Takeaways
- • Strategy disclosed it bought over $21 million worth of Bitcoin last week, its fifth purchase since August, bringing total holdings to roughly $70 billion per Fortune.
- • The purchase was funded by selling more than 125,000 common shares and $500,000 in cash, while the company spent roughly $192 million repurchasing nearly 2 million shares of its STRC preferred stock.
- • Bitcoin rebounded to about $82,600 from a June low of $58,000, after falling from a $126,000 high last October, and Strategy stopped selling and resumed stockpiling as prices recovered.
- • Other corporate buyers have returned, including Strive ($169 million for 2,000 Bitcoin), Robinhood ($25 million), Metaplanet, and Bitmine (about $41 million in Ether-focused treasury additions).
Summary
Strategy, the corporate holder led by Michael Saylor, announced on Monday that it bought more than $21 million of Bitcoin the previous week, lifting its total holdings to roughly $70 billion, according to Fortune. The company funded the purchase by selling more than 125,000 common shares and using $500,000 in cash. It also spent roughly $192 million to repurchase nearly 2 million shares of STRC, a preferred stock that makes regular payments to investors. The purchase marks Strategy's fifth buy since August and extends its return to accumulation.
The move follows a sharp downturn in which Bitcoin fell from a high of $126,000 in October of last year to a low of $58,000 in June. During the slump, Strategy, which holds roughly 4% of Bitcoin's circulating supply, sold portions of its holdings on four occasions. After Bitcoin broke out of a trading lull in mid-August and climbed to about $77,000 for the first time since May, the company halted sales and resumed buying. Bitcoin was trading at $82,600 on Monday morning.
Strategy is not alone. Strive, the asset manager cofounded by Vivek Ramaswamy, announced a $169 million purchase of 2,000 Bitcoin earlier this month, bringing its stockpile to roughly $2.4 billion. Robinhood, led by CEO Vlad Tenev, disclosed a $25 million investment for its own balance sheet. Metaplanet, the Japanese investment firm described as the world's second-largest publicly traded Bitcoin treasury company, said it sold 10,000 Bitcoin and bought 11,000 in the third quarter, a move it framed as demonstrating to credit markets that it could convert holdings into cash when needed. Bitmine, a former Bitcoin miner now operating as an Ethereum treasury company, added roughly $41 million of crypto, bringing its holdings to about 6 million tokens, or nearly 5% of Ether's total supply.
The renewed buying coincides with hopes for further gains. Fortune reported that analysts expect Bitcoin to recover further by year-end, with one strategist predicting a summer bottom followed by a rebound toward $100,000. Bitcoin has held up despite recent U.S. interest rate increases and renewed Middle East tensions.
The move follows a sharp downturn in which Bitcoin fell from a high of $126,000 in October of last year to a low of $58,000 in June. During the slump, Strategy, which holds roughly 4% of Bitcoin's circulating supply, sold portions of its holdings on four occasions. After Bitcoin broke out of a trading lull in mid-August and climbed to about $77,000 for the first time since May, the company halted sales and resumed buying. Bitcoin was trading at $82,600 on Monday morning.
Strategy is not alone. Strive, the asset manager cofounded by Vivek Ramaswamy, announced a $169 million purchase of 2,000 Bitcoin earlier this month, bringing its stockpile to roughly $2.4 billion. Robinhood, led by CEO Vlad Tenev, disclosed a $25 million investment for its own balance sheet. Metaplanet, the Japanese investment firm described as the world's second-largest publicly traded Bitcoin treasury company, said it sold 10,000 Bitcoin and bought 11,000 in the third quarter, a move it framed as demonstrating to credit markets that it could convert holdings into cash when needed. Bitmine, a former Bitcoin miner now operating as an Ethereum treasury company, added roughly $41 million of crypto, bringing its holdings to about 6 million tokens, or nearly 5% of Ether's total supply.
The renewed buying coincides with hopes for further gains. Fortune reported that analysts expect Bitcoin to recover further by year-end, with one strategist predicting a summer bottom followed by a rebound toward $100,000. Bitcoin has held up despite recent U.S. interest rate increases and renewed Middle East tensions.
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