Michael Saylor’s Strategy Bolsters Bitcoin Holdings Amid Global Tensions
Major BTC Acquisitions amid Market Volatility
Michael Saylor’s Strategy, the leading corporate holder of Bitcoin, has recently revealed its latest purchasing activities amidst rising geopolitical unrest in the Middle East. The company announced the acquisition of 10,100 Bitcoin (BTC) for approximately $1 billion in a report released on Monday.
This strategic move occurred as Bitcoin’s price fluctuated, dropping from $110,000 on June 9 to a weekly minimum of $103,639 on Thursday, following reports of Israeli attacks on Iranian nuclear sites. This new investment marked Strategy’s second BTC acquisition in June, which brings its cumulative BTC holdings to 592,100 coins, purchased for around $41.8 billion at an average price of $70,666 each.
STRD Launches on Nasdaq to Fund Bitcoin Purchases
The announcement comes on the heels of the debut of Strategy’s Bitcoin-backed preferred stock, known as STRD, on the Nasdaq on Wednesday. Through this new financial instrument, Strategy aims to raise $250 million via an initial public offering of perpetual preferred stock, with plans to reinvest in Bitcoin.
The issuance will comprise 2.5 million shares of 10% Series A Perpetual Stride Preferred Stock at a price of $100 per share.
Enhanced BTC Yield Statistics for Strategy
With its recent Bitcoin addition, Strategy has significantly elevated its overall yield from BTC holdings. This metric, which tracks the growth percentage of its Bitcoin assets over certain intervals, has now climbed to 19.1% year-to-date, reflecting a 2% improvement since the previous purchase of 1,045 BTC declared on June 9. For the ongoing quarter, the yield stands at 7.4%.
These impressive metrics draw Strategy closer to its announced target of a 25% yield by the end of 2025, an increase from its original goal of 15%, which was revised on May 1.
Celebrating Milestones with Industry Peers
Additionally, Saylor has been vocal on social media, celebrating the achievements of prominent Bitcoin strategies from firms like Japan’s Metaplanet. The company aims to hold 100,000 BTC by 2026, and Saylor took the opportunity to commend Metaplanet’s CEO, Simon Gerovich, and the team for surpassing the 10,000 BTC milestone.
Caution from Analysts on Corporate Bitcoin Strategies
In light of these moves, industry experts continue to express caution towards companies engaging in substantial Bitcoin investments, particularly when evaluating the scale of their holdings in relation to their overall market capitalization. On social media, Matthew Sigel, head of digital assets research at VanEck, emphasized the risks associated with public firms acquiring Bitcoin, warning that equity dilution could occur if the shares trade at or near net asset value.
Similarly, Standard Chartered has previously voiced concerns about the volatility associated with increased corporate Bitcoin adoption.