Strategy buys 6,220 Bitcoin for $740M; holdings now 607K BTC
According to a July 21 SEC filing, Strategy purchased 6,220 Bitcoin for $739.8 million at an average price of $118,940. The acquisition raises its total holdings to 607,770 BTC, bought at a $71,756 cost basis, yielding an unrealised gain of about $28 billion with Bitcoin trading near $120,000.
Strategy funded the BTC purchase by issuing 1.64 million new shares under its $210 million ATM program, raising $736.4 million, and liquidating smaller positions for $3.9 million. It earlier issued three tranches of perpetual preferred stock—STRK, STRF and STRD—securing over $3 million.
On July 21, Strategy unveiled its fourth preferred issue, STRC, offering five million shares at $100 face value with a floating 9% annual dividend. Proceeds will support general corporate purposes, including further Bitcoin acquisitions.
Analysts warn that equity-financed Bitcoin purchases can amplify market volatility. James Check of Checkonchain cautions that share dilution may force asset sales if BTC prices fall, while Matthew Sigel at VanEck highlights risks of issuing equity above fair value.
Strategy’s aggressive institutional investment consumed nearly two weeks of new Bitcoin supply. The move underscores confidence in long-term BTC adoption but raises liquidity and volatility concerns for traders.
Bullish
The announcement is bullish for Bitcoin. Strategy’s $740 million purchase absorbs nearly two weeks of new supply, potentially supporting short-term price gains. The firm’s aggressive equity financing underscores institutional confidence, which often attracts further inflows. However, reliance on stock issuances and perpetual preferred stock introduces dilution and liquidity risks that could trigger volatility if Bitcoin prices pull back. In the long term, this corporate treasury trend strengthens Bitcoin’s role as a treasury asset, supporting fundamentals despite possible interim fluctuations.