Strategy Acquires 10,645 Bitcoin as Japan Rate Hike Looms

• Strategy buys 10,645 BTC for $980.3M, lifting total holdings to 671,268 Bitcoin.
• MSTR stock sales funded most of the purchase, raising $888.2M through the ATM program.
• Japan rate hike fears and Bitcoin risk continue to pressure Strategy stock.

Michael Saylor’s Strategy, previously MicroStrategy, has made another weekly Bitcoin purchase, despite the crypto market continues its decline. This latest purchase comes amid a potential Japan rate hike, which could extend BTC’s year-to-date (YTD) loss and also negatively affect MSTR stock.

The details were revealed in a filing by the US Securities and Exchange Commission. Strategy purchased 10,645 Bitcoin at a cost of $980.3 million. The buying price was $92,098 per Bitcoin. After the transaction, the company reported a year-to-date Bitcoin yield of 24.79% annually. The filing confirmed Strategy’s ongoing accumulation approach.

Source: SEC

The company currently possesses a total of 671,268 Bitcoin. These holdings were purchased by Strategy at a cost of $50.33 billion. The average price of all purchases is $74,972 per Bitcoin. The size of the holdings makes Saylor’s company one of the biggest corporate owners of Bitcoin. It has maintained the position as central to its treasury structure.

Strategy Funds Bitcoin Purchase Through Equity Sales

Strategy had financed the purchase using several equity instruments. STRK shares sold by the firm were $600,000. It also raised $82.2 million using STRD shares. MSTR stock sales generated the most significant part of financing, amounting to $888.2 million. The firm bought Bitcoin with the full net proceeds.

Also Read: Strategy Inc. Opposes MSCI’s Plan to Exclude DATs from Key Indexes

Michael Saylor indicated the acquisition prior to disclosure. On Sunday he posted a message on X. He added, “Back to More Orange Dots.” Market participants usually relate the term with Strategy Bitcoin purchases. The next day the company registered the transaction through regulatory filings.

The recent acquisition was greater than the two-week prior purchase by the firm. Saylor company had earlier on purchased 10,624 Bitcoin at a cost of $962.7 million. These two buys make it the biggest buying spurt since July. At that time, the company purchased $2.46 billion of Bitcoin. The timing indicates accumulation over a decreasing market.

ATM Program Supports Strategy’s Dollar Reserve Plan

MSTR stock sales constituted the largest part of funding via the At-The-Market (ATM) program. These sales boosted following the establishment of Strategy US dollar reserve structure. The company claimed that the reserve lowers the strain to sell Bitcoin holdings. This is regardless of a negative market net asset value.

The company also encounters possible index alteration. MSCI suggested that companies that held digital-asset treasuries exceeding 50% of assets should be excluded. Saylor company requested MSCI to withdraw the proposal. The company claimed that the exclusion would affect benchmark representation.

The risk of bitcoin price is still high. Analysts have cautioned that it might fall to as low as $70,000. A rate increase by the Bank of Japan would only increase the pressure. The company stock continues to be closely correlated with Bitcoin. Stock has fallen by over 24% during the last month. It was trading at approximately $164 in pre-market trade, compared to its last week’s close at $176.

Source: TradingView

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