Michael Saylor-led Strategy has purchased 4,603 Bitcoin for an aggregate of $370 million, completing its first acquisition in two months as the leading corporate holder of the digital asset.
The company acquired 4,603 Bitcoin (BTC) at an average rate of $80,318 each, elevating its total corporate treasury to 845,050 BTC secured for an aggregate sum of $63.3 billion at an overall average price of $75,413, based on an 8-K filing submitted Monday to the Securities and Exchange Commission.
Capital for the transaction was raised via net proceeds from an equity offering of 602 million MSTR common shares. From these net proceeds, the firm allocated $30 million toward growing its USD Cash reserves and directed $151.8 million toward buybacks of its STRC preferred shares.
Trading on the Nasdaq, shares of MSTR recorded a gain of under 1% during Monday’s pre-market session following a decline of over 7% on Friday.
This purchase represents Strategy’s initial corporate Bitcoin buy since the middle of June, when the enterprise previously bought 1,587 BTC for approximately $100 million.
On Sunday, Michael Saylor, Strategy’s co-founder and executive chairman, hinted at the resumption of Bitcoin accumulation by posting “We’re Back” on X, garnering widespread attention. Saylor frequently shares enigmatic weekend posts prior to formal public announcements regarding major treasury transactions by the firm.
STRC, the organization’s perpetual preferred stock, rose by 0.44% in pre-market dealing on Monday to reach $97.33, representing a 2.67% discount relative to its $100 par target, as per Yahoo Finance metrics.
Strategy relies on STRC as a primary funding vehicle for expanding its Bitcoin reserves. Valuations trading beneath the par baseline restrict Strategy’s capacity to generate capital through new STRC issuances. Furthermore, it could compel the organization to lift its stated dividend payout rate to draw investors and stabilize the valuation of STRC.
Through an 8-K filing dated June 29, Strategy introduced a capital structure plan permitting the sale of Bitcoin to back dividend payouts while hiking the annual dividend yield on STRC preferred shares to 12%. Earlier in June, Strategy reported offloading 32 Bitcoin, representing its first published BTC divestment following a tax-loss harvest transaction executed in 2022.
Related: Standard Chartered wavers on $100K Bitcoin year-end call, says it may be ‘too low’
Originally published at https://cointelegraph.com/news/strategy-buys-370m-bitcoin-first-acquisition-june?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
