7:05 AM ▪
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The strategy is once again strengthening its position in Bitcoin, despite a hesitant market. The Michael Saylor-led company just announced the purchase of 1,031 more BTC, extending the streak of acquisitions that began at the beginning of the month. This operation takes place in a context marked by the rise of institutional players and increased pressure on prices. It thus renews questions about the adopted strategy of accumulation and its consequences for market equilibrium.
In short
- Strategy strengthens its accumulation strategy by buying 1,031 bitcoins for $76.6 million.
- The company increases its reserves to 762,099 BTC, despite a latent loss of about 7%.
- A series of massive purchases in March confirms the ongoing investment momentum.
- The strategy faces increasing competition from bitcoin ETFs, particularly BlackRock.
The strategy continues its purchases despite the uncertain market
Strategy acquired 1,031 bitcoins for $76.6 million, according to an 8,000 filing with the SEC. The operation was carried out at an average price of $74,326 per BTC, which is a level below the total average cost of its acquisitions, set at $75,694.
The company says these purchases were financed by the sale of common stock. This acquisition now increases its holdings to 762,099 BTC with a total cost of about $57.69 billion.
- In March, Strategy bought 41,362 BTC for about $2.93 billion;
- Bitcoin is currently trading around $70,895;
- The company shows an unrealized loss of about 7%;
- The current valuation of its holdings is approximately $54 billion.
These elements reflect a progressive accumulation strategy regardless of short-term fluctuations.
Shift in funding and pressure from institutional players
Financing for this latest acquisition is based entirely on the sale of common stock, a significant change from previous operations.
During the purchase of 22,337 BTC (about $1.6 billion), Michael Saylor’s company largely mobilized its preferred stock product STRC, which generated nearly $1.2 billion, or about 75% of the total funding. This shift in funding sources reflects an adjustment in capital management and investor exposure to its Bitcoin strategy.
At the same time, the Strategy position fits into an increasingly competitive institutional environment. The company’s holdings remain slightly below that of BlackRock’s iShares Bitcoin Trust (IBIT), which holds about 785,300 BTC on behalf of its clients. More broadly, US spot bitcoin ETFs collectively hold nearly 1.3 million BTC, or about 6.1% of the total supply with a cap of 21 million.
The current evolution of these strategies reveals a market structured by players capable of absorbing significant volumes. A continuous accumulation strategy, despite temporarily negative performance, contrasts with the logic of ETF diversification. This dual movement could affect market liquidity, price formation and bitcoin’s role on corporate balance sheets and institutional portfolios in the coming months.
The strategy continues to accumulate at a steady pace, despite market pressure and increased institutional competition. The momentum fits into a key phase for the company, which is now on the verge of recording its second-best quarter of bitcoin acquisitions. Whether this strategy will strengthen his position or increase his exposure to Bitcoin cycles remains to be seen.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed myself to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and social issues of this ongoing revolution.
DISCLAIMER OF LIABILITY
The views, thoughts and opinions expressed in this article are solely those of the author and should not be taken as investment advice. Before making any investment decision, do your own research.
