Strategy has resumed its Bitcoin accumulation after a brief pause, purchasing 535 BTC last week for approximately $43 million. This move comes shortly after the company's leadership indicated that some Bitcoin sales could occur to support dividend payments.
The recent Bitcoin acquisition happened between May 4 and May 10 at an average price of around $80,340 per BTC, according to a filing with the US Securities and Exchange Commission. This purchase raised Strategy's holdings to a total of 818,869 Bitcoin, acquired at an average price of $75,540 per coin when including fees and expenses. It was the first purchase since late April, when the company bought 3,273 BTC for $255 million.
The funds for last week’s purchase primarily came from the sale of the company's Class A common stock, generating roughly $42.9 million, with an additional $100,000 raised through Stretch stock issuance. Strategy plans to use such transactions to finance both Bitcoin acquisitions and dividend payments, reflecting a strategy to balance investor returns without destabilizing the market.
Following the disclosure of the Bitcoin purchase, Strategy’s shares jumped in pre-market trading, climbing over 4% to above $187.50 per share. Despite the recent dip in Bitcoin prices, Strategy’s stock remains significantly up year-to-date.
Investor reactions have been mixed since the company’s first-quarter earnings call, where it was revealed that some Bitcoin sales might be periodic to fund dividends and prevent market disruptions. While concerns persist about potential sell-offs triggering cascading liquidations, some market analysts believe these sales could provide Strategy with increased flexibility to capitalize on market swings and finance future purchases.