Resuming its accumulation approach, Strategy purchased 535 Bitcoin for $43 million last week. This comes days after chairman Michael Saylor suggested selling certain assets to pay dividends.
An SEC filing on Monday shows that the biggest Bitcoin holder in the world bought Bitcoin (BTC) at an average price of $80,340 per BTC between May 4 and May 10. With this acquisition, Strategy’s total Bitcoin holdings reached 818,869 BTC, a sum of about $61.86 billion, or $75,540 per coin (including fees and expenses).
Investors Watch Its Evolving Dividend and Treasury Strategy
Strategy hadn’t made a buy since purchasing 3,273 BTC for $255 million on April 27. The announcement came after Saylor said on the first quarter earnings call that Strategy will “probably sell some Bitcoin” to pay dividends and demonstrate that the sale would neither hurt the firm or the Bitcoin market as a whole.
After a week-long hiatus, Saylor suggested on Sunday that the firm will begin buying Bitcoin. The money for the Bitcoin acquisition came from selling shares. Class A common stock (MSTR) sales accounted for $42.9 million of the purchase funding, while the issuing of Stretch (STRC) shares contributed $100,000, according to the filing.
Following Monday’s announcement of the Bitcoin acquisition, strategy shares increased in premarket trade. At the time of writing, its shares were trading at $187.5, a 4.3% increase, as reported by Yahoo Finance. According to TradingView statistics, Strategy’s shares have increased by 23% year-to-date, even though Bitcoin has declined by 7.2% during that time.
Investors are still worried about Strategy’s plans to “inoculate the market” and pay dividends on its Bitcoin holdings, as mentioned by Saylor during the company’s first quarter earnings call.