Strategy Buys 1,587 Bitcoin for $100M Below Cost Basis

Strategy, formerly known as MicroStrategy, acquired 1,587 Bitcoin for approximately $100 million between June 8 and 15, bringing its total holdings to 846,842 BTC, according to a securities filing. The purchase was funded by selling roughly $209 million of MSTR Class A common stock—more than double the amount spent on Bitcoin. The coins were bought at an average price of $63,024 each, below the firm's blended cost basis of approximately $75,656 per Bitcoin accumulated over years of purchases. With Bitcoin trading near $66,216, Strategy's holdings remain below their cumulative purchase cost of around $64 billion on a mark-to-market basis. The acquisition follows the company's first Bitcoin sale in years, when it offloaded about 32 BTC on June 1 to support income-paying securities programs.

Strategy Sells $209 Million in MSTR Stock to Fund Bitcoin Purchase

Strategy financed the acquisition by selling MSTR Class A common stock rather than using its preferred-share programs. The company sold approximately 1.73 million shares to raise about $209 million—more than twice the $100 million spent on Bitcoin during the same period. The imbalance between stock proceeds and Bitcoin purchases has drawn scrutiny, as the firm continues to issue equity at a faster pace than it converts the proceeds into Bitcoin, directing the remainder toward liquidity and its dividend-paying securities.

Company Sold 32 BTC on June 1 in First Sale in Years

The purchase came two weeks after Strategy sold Bitcoin for the first time in years, offloading about 32 BTC on June 1. Chairman Michael Saylor defended the sale as necessary to support the company's income-paying securities programs. "Still adding dots," Saylor posted on June 15, referencing the company's running chart of purchases. With Bitcoin down sharply from its highs, the firm's average cost now sits above the market price, a reversal from the deep unrealized gains it carried through much of the prior rally.

FAQ

What did Strategy buy between June 8 and 15?

Strategy acquired 1,587 Bitcoin for approximately $100 million between June 8 and 15, bringing its total holdings to 846,842 BTC. The coins were purchased at an average price of $63,024 each, below the firm's blended cost basis of approximately $75,656 per Bitcoin.

How did Strategy fund the Bitcoin purchase?

Strategy funded the acquisition by selling approximately 1.73 million shares of MSTR Class A common stock, raising about $209 million—more than double the $100 million spent on Bitcoin over the same period.

When did Strategy last sell Bitcoin before this purchase?

Strategy sold Bitcoin for the first time in years on June 1, offloading about 32 BTC. Chairman Michael Saylor stated the sale was necessary to support the company's income-paying securities programs.