The Bitcoin holdings for the strategy surpassed $71 billion amid the market rally.
According to Cointelegraph, the co-founder of the strategy, Michael Saylor, announced an upcoming Bitcoin (BTC) purchase as the company's total holdings surpassed $71 billion. The company's latest purchase was on July 14, when it bought 4,225 Bitcoins for $472.5 million, increasing its total holdings to 601,550 Bitcoins, valued at over $71.4 billion. This investment 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 a leading strategy, continue to drive demand for Bitcoin in the current market cycle, alongside ETFs, institutional investors, and centralized cryptocurrency exchanges. The company's stock rose about 21.52% over the past month, raising the overall valuation of the strategy to over $118 billion. This stock increase coincided with a rise in the cryptocurrency market, where the total market capitalization exceeded $4 trillion in July, and Bitcoin reached a new all-time high.
In December 2024, the Nasdaq 100 stock market index strategy entered, reflecting the increasing demand from institutions for its shares. Some institutional investors seek exposure to Bitcoin but face constraints preventing them from holding Bitcoin directly in their investment portfolios. These investors often choose to hold shares of Bitcoin treasury companies or purchase their debt products as an alternative to holding BTC. Macro economist Lynn Alden highlighted that many managed capital funds have strict orders, limiting portfolio managers to purchasing only stocks, not bonds, ETFs, or commodities.
Vanguard, a major institutional investment company, has historically opposed holding Bitcoin or offering it directly to clients. However, it now holds 20 million shares of the strategy, representing about 8% of the company's outstanding shares. This indirect exposure to Bitcoin through a publicly traded company highlights Bitcoin's integration into traditional finance via conventional investment means.
