Strategy has once again purchased 430 bitcoins, bringing total holdings to over 629,000 bitcoins
The Nasdaq-listed bitcoin stock company Strategy (formerly MicroStrategy) announced the purchase of 430 bitcoins ($BTC) for $51.4 million, with an average cost of $119,666 per bitcoin. This acquisition brings the company's total bitcoin holdings to 629,376 bitcoins, valued at approximately $7.2 billion, making it the largest corporate bitcoin holder in the world, accounting for nearly 3% of the total bitcoin supply.
The company's executive chairman Michael Saylor revealed on social media that Strategy's bitcoin yield year-to-date has reached 25.1%, demonstrating the effectiveness of its active hoarding strategy. Since the start of the bitcoin acquisition plan in 2020, Strategy has invested approximately $46.15 billion, with an average cost of $73,320 per bitcoin.
Source: X/@saylor Strategy announced the purchase of 430 bitcoins for $51.4 million
Relax stock issuance restrictions to provide flexibility for continuous coin purchases
Strategy also announced revisions to its stock issuance guidelines, providing the company with greater capital operation flexibility. According to the new guidelines:
When the company's market value to net asset value ratio (mNAV) exceeds 4.0 times, it will 'actively' issue MSTR stock to acquire more bitcoins.
When mNAV is between 2.5 times and 4.0 times, it will 'opportunistically' issue stock.
When mNAV is below 2.5 times, the company will restrict stock issuance, only for paying debt interest and preferred stock dividends.
Source: Strategy Strategy announced revisions to its stock issuance guidelines
This adjustment has drawn market attention, particularly the new flexible clause 'when the company deems it favorable,' allowing Strategy to issue stock even when mNAV is below 2.5 times. Notable short-seller James Chanos criticized this move as reducing protections against shareholder dilution and questioned the relatively small scale of the company's latest bitcoin purchases, which may reflect weak demand for preferred shares.
Source: X/@RealJimChanos James Chanos criticized Strategy's move as reducing protections against shareholder dilution
Stock price performance is under pressure, but the long-term strategy remains unchanged
Despite Strategy's ongoing expansion of bitcoin holdings, its stock price performance is facing challenges. Strategy's stock (NASDAQ: MSTR) is currently trading at approximately $363.6, down 0.74% from the previous trading day, and has fallen 9.37% over the past week. In contrast, the price of bitcoin has decreased by about 5% during the same period, briefly breaking below the support level of $115,000.
It is worth noting that Vanguard, the world's largest asset management company, reduced its holdings of Strategy shares by 10% in the second quarter, intensifying market concerns about the recent trend of the stock.
Analysts point out that as ether stock companies and upcoming cryptocurrency IPOs begin to attract new capital, the competitive advantage of bitcoin stock companies is weakening.
The trend of bitcoin stockpiling continues to spread, with Asian companies actively following suit
Strategy's bitcoin acquisition strategy has become a model for global enterprises to follow. The Japanese listed company Metaplanet is also actively expanding its bitcoin holdings, announcing the purchase of 775 bitcoins for $93 million, bringing its total holdings to 18,888 bitcoins. This indicates a global acceleration of the trend of bitcoin as a corporate inventory asset.
Source: Metaplanet Metaplanet purchased 775 bitcoins for $93 million, bringing its total holdings to 18,888 bitcoins
CoinFund managing partner Seth Ginns stated that cryptocurrency stocks are accelerating the integration of traditional finance and cryptocurrencies. This wave of bitcoin stock activities demonstrates a clear demand for exposure to crypto tokens through equity. Despite facing market volatility and increased competition, Strategy remains committed to its long-term bitcoin accumulation strategy. Saylor previously stated that the company could ultimately hold 3% to 7% of the total bitcoin supply.
'Hoarding coins is a must! Strategy invests another $51.4 million to buy coins, holding nearly 63,000 BTC' This article was first published in 'Crypto City'
