Strategy's Bitcoin Holdings Surpass $71 Billion Amid Market Surge
According to Cointelegraph, Strategy co-founder Michael Saylor announced a forthcoming Bitcoin (BTC) acquisition as the company's total holdings exceeded $71 billion. The company's latest purchase was on July 14, when it acquired 4,225 BTC for $472.5 million, increasing its total holdings to 601,550 BTC, valued at over $71.4 billion. This investment has resulted in a 66.5% increase in value, translating to over $28.5 billion in unrealized gains, as reported by SaylorTracker.
Bitcoin treasury companies, with Strategy at the forefront, continue to drive Bitcoin demand in the current market cycle, alongside exchange-traded funds (ETFs), institutional investors, and centralized crypto exchanges. The company's stock has surged by approximately 21.52% over the past month, elevating Strategy's total valuation to over $118 billion. This stock rally coincided with a rise in the crypto market, where the total market capitalization surpassed $4 trillion in July, and Bitcoin reached a new all-time high.
In December 2024, Strategy entered the Nasdaq 100 stock market index, reflecting growing institutional demand for its stock. Some institutional investors seek exposure to Bitcoin but face restrictions that prevent them from holding Bitcoin directly in their investment portfolios. These investors often opt to hold shares of Bitcoin treasury companies or purchase their corporate debt products as a proxy for holding BTC. Macro economist Lyn Alden highlighted that many managed capital funds have strict mandates, limiting portfolio managers to buying only stocks, not bonds, ETFs, or commodities.
Vanguard, a major institutional investment firm, has historically opposed holding Bitcoin or offering it directly to clients. However, it now holds 20 million shares of Strategy, representing about 8% of the company's outstanding stock. This indirect exposure to Bitcoin through a publicly traded company underscores Bitcoin's integration into traditional finance via legacy investment vehicles.
