Strategy bought 1,550 bitcoins for about $100 million between June 1 and July 7, at an average price of roughly $65,332 per coin. After the purchase, Strategy’s total bitcoin holdings rose to 845,256. The funds came from selling 1,409,600 shares of MSTR Class A common stock, raising $181 million. This buy was the first return to net buying since late May, when it sold 32 bitcoins.
Background and market interpretation of the sale of 32 BTC
In an 8-K filing submitted to the SEC on June 1, Strategy disclosed that from May 26 to May 31 it sold 32 bitcoins at an average price of $77,135, raising about $2.5 million to pay preferred stock dividends. This was Strategy’s first bitcoin sale since December 2022, accounting for 0.0038% of its total holdings.
Aave protocol founder Luigi D'Onorio DeMeo suggested on X that this sale of 32 bitcoins may be a “psychological warfare” move, intended to meet index inclusion requirements. Saylor posted a chart on X on June 7 implying that more bitcoins might be included, but Strategy had previously been excluded from the S&P 500 index multiple times.
Bitcoin holdings comparison: Strategy vs other institutions
Strategy: 845,256 BTC (largest among globally listed companies)
Twenty One Capital (the second-largest listed company): 43,514 BTC (Strategy is more than 19 times its amount)
BlackRock IBIT: 811,291 BTC (32,415 fewer than Strategy)
Total private companies (led by Block.one): 300,463 BTC (543,243 fewer than Strategy)
Total bitcoin holdings across globally listed companies: 270 companies, with a combined 1.54 million BTC
Strategy’s financial position
Strategy’s bitcoin portfolio financial figures (as of June 7): total investment cost of $6.387 billion, average price of $75,701; current portfolio valuation of about $5.309 billion (based on a bitcoin quote of about $63,000). The book unrealized loss is about $10.78 billion. Holdings account for about 4% of the largest outstanding supply of 21 million bitcoins.
Stock performance: Over the past month, bitcoin fell 21% and MSTR fell 35%; over the past year, bitcoin fell 40% and MSTR fell nearly 70%.
FAQ
Why did Strategy buy 1,550 coins immediately after selling 32?
Saylor’s public explanation is that even a small-scale sale would keep Strategy in a net buyer position. The $100 million purchase (at an average price of $65,332) is vastly larger than the sale of 32 BTC at the end of May (about $2.5 million), consistent with his earlier stance that the total amount bought would exceed the amount sold.
Where did the funding for Strategy’s purchase of 1,550 BTC come from?
According to SEC filings, the funds for this purchase came from selling 1,409,600 shares of MSTR Class A common stock, raising $181 million; during the same period, Strategy did not sell its preferred stock (STRF, STRC, STRK, and STRD).
What is Strategy’s current book profit/loss situation?
Based on the current bitcoin price of about $63,000, Strategy’s bitcoin portfolio is valued at about $5.309 billion, below its total cost of $6.387 billion. The book unrealized loss is about $10.78 billion. The average price of $75,701 is the weighted average cost of Strategy’s past purchases.
