Strategy bought 535 Bitcoin for $43 million last week, resuming its accumulation strategy days after its chairman, Michael Saylor, said the company may sell some of its holdings to fund dividend payments.
The world’s largest corporate Bitcoin holder acquired the Bitcoin (BTC) between May 4 and May 10 at an average price of $80,340 per BTC, according to a Monday filing with the US Securities and Exchange Commission.
The purchase lifted Strategy’s total holdings to 818,869 BTC, acquired for about $61.86 billion at an average price of $75,540 per coin, including fees and expenses.
The acquisition was Strategy’s first since April 27, when the company bought 3,273 BTC for $255 million. It also followed the company’s first-quarter earnings call, where Saylor said Strategy would “probably sell some Bitcoin” to fund a dividend and show that a sale would not undermine the company or the broader Bitcoin market.
On Sunday, Saylor hinted that the company would resume BTC purchases after the prior week’s pause.
Strategy Bitcoin acquisition, 8-K filing. Source: SEC
The Bitcoin purchase was made using proceeds from share sales. The majority of the acquisition, or $42.9 million, was funded through the sales of Class A common stock (MSTR), while another $100,000 was funded through the issuance of Stretch (STRC) stock, the filing shows.
Related: Capital B raises $17.8M to expand its Bitcoin treasury
Strategy shares gain in pre-market, despite Bitcoin sales concerns
Strategy shares rose in premarket trading on Monday after the company disclosed the Bitcoin purchase.
Its shares rose 4.3% to change hands above $187.50 at the time of writing, according to Yahoo Finance.
Strategy’s shares are up 23% year-to-date despite Bitcoin’s 7.2% decline during the same period, data from TradingView shows.
MSTR/USD, 1-day chart. Source: Yahoo Finance
Still, investor concerns persist following Strategy’s first quarter earnings call, when Saylor said Strategy may periodically sell portions of the company’s Bitcoin holdings to fund dividends and to “inoculate the market.”
While some investors feared that a Strategy sale could create more cascading liquidations, others, such as Bitcoin advocate Samson Mow, said that Strategy’s potential sales can give it greater room to maneuver in the market.
Strategy investor Adam Livingston argued that periodic sales may allow the company to finance more Bitcoin purchases in the future.
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