Strategy Increases Bitcoin Holdings
Strategy, the business intelligence firm co-founded by Michael Saylor, has expanded its Bitcoin holdings to over $73 billion following a reported acquisition as part of its treasury approach.
In a notice released on Monday, Saylor announced that the company purchased 525 Bitcoin (BTC) for approximately $60 million, translating to an average price of $114,562 per coin. As a result of this latest purchase, Strategy’s total Bitcoin holdings have reached 638,985 BTC, valued at over $73 billion as of the time of publication.
Accumulation Strategy Overview
This Bitcoin acquisition aligns with Strategy’s accumulation strategy, which was initiated in August 2020 with an initial investment of $250 million in BTC. Since that first investment, the company has consistently announced substantial BTC purchases, including a $450 million acquisition reported at the end of August and early September.
Saylor’s strategy of accumulating Bitcoin through Strategy was among the first notable initiatives by a company to establish a cryptocurrency treasury as a possible hedge against inflation. While numerous firms in the US and around the world have set aside similar allocations for BTC investment, others have also been looking at assets like Solana (SOL), Ether (ETH), and even Dogecoin (DOGE).
State Treasuries and Pension Funds
Some state treasuries in the US have been investigating methods to directly hold cryptocurrencies like Bitcoin through strategic reserves, while others have opted to invest in shares of Strategy’s stock (MSTR) to gain exposure to digital assets, especially where there may be restrictions on direct investments or public opposition.
- Pension funds in Arizona
- California
- Colorado
- Florida
- Louisiana
- Maryland
- New Jersey
- Texas
- Utah
These funds reported holdings in MSTR as of 2024. Additionally, an executive order signed by US President Donald Trump in August may further accelerate the adoption of cryptocurrencies, permitting 401(k) retirement plans to incorporate cryptocurrencies into their investment strategies.
Strategy’s Stock and Products
Alongside its Bitcoin holdings, Strategy offers preferred shares, STRF and STRK, as yield products linked to the cryptocurrency’s price, as well as leveraged exchange-traded funds (ETFs) associated with its Bitcoin assets.
Throughout the past year, the price of MSTR has surged by more than 140%, reaching $324.05 at the time of publication.
