Strategy don buy 6,220 Bitcoin for $740M; dem get 607K BTC now
According to SEC filing wey dem drop on July 21, Strategy buy 6,220 Bitcoin for $739.8 million at the average price of $118,940. This buy increase their total holding reach 607,770 BTC, wey dem buy for $71,756 cost basis, and dem get unrealized gain around $28 billion as Bitcoin dey trade around $120,000.
Strategy take pay for the BTC buy by issuing 1.64 million new shares under their $210 million ATM program, wey raise $736.4 million, plus dem sell smaller positions for $3.9 million. Before now, dem don issue three tranche of perpetual preferred stock—STRK, STRF and STRD—wey dem secure pass $3 million.
For July 21, Strategy reveal their fourth preferred issue, STRC, wey offer five million shares at $100 face value with floating 9% annual dividend. The money go help support general company work, including more Bitcoin buy.
Analysts dey warn say when people buy Bitcoin with equity money fit make market wahala increase. James Check from Checkonchain talk say share dilution fit force dem to sell assets if BTC price fall, while Matthew Sigel from VanEck point out the risk of issuing equity above fair value.
Strategy aggressive investment from institution side chop almost two weeks new Bitcoin supply. The move show say dem trust long-term BTC adoption but e fit cause liquidity and volatility gbege for traders.
Bullish
Di announcement beta for Bitcoin. Strategy buy $740 million don swallow almost two weeks of new supply, fit help short-term price gain. Di aggressive equity financing we di firm dey do dey show say institutions get confidence, and dat fit make more money come in. But rely on stock issuances and perpetual preferred stock fit cause dilution and liquidity risk we fit make market shake if Bitcoin price drop. For long term, dis corporate treasury trend dey make Bitcoin better as treasury asset, e go support fundamentals even if some short wahala happen.