- Strategy buys 22,205 Bitcoin, valued at $2.13 billion.
- The company’s total BTC holdings have reached 710,000 BTC.
- The BTC treasury company will continue purchasing the crypto.
Michael Saylor’s Strategy, formerly known as MicroStrategy, has further bolstered its massive Bitcoin portfolio with the January purchase of 22,205 BTC. As the largest Bitcoin treasury company continues to accumulate more BTC despite the ongoing market volatility, it indicates Strategy’s conviction in its long-term potential.
With this latest BTC purchase, the company now holds a total of 710,000 BTC, representing more than 3% of the pioneer crypto’s total circulating supply. This aggressive crypto purchase is also poised to have a significant impact on the BTC price while it is currently struggling to maintain momentum.
Strategy Expands Bitcoin Holdings
According to an 8-K filing with the US Securities and Exchange Commission today, Strategy has added another 22,205 BTC to its already strong collection. The latest purchase made between January 2 and January 19 is valued at a staggering $2.13 billion at an average price of $95,284.
Now, the BTC reserve company’s total Bitcoin holdings have hit a remarkable 709,71 BTC, valued at around $64.5 billion. These coins were reportedly bought at an average price of around $53.9 billion. While this massive portfolio accounts for about 3% of the total 21 million circulating supply of BTC, it reflects about $10.6 billion in paper gains at current market prices.
More Bitcoin Purchases Ahead?
Strategy’s aggressive Bitcoin accumulation plan signals the company’s long-term commitment to BTC. The company intends to continue purchasing BTC using proceeds from equity and preferred stock offerings. Under its expanded “42/42” plan, the firm targets $84 billion in capital for BTC acquisition through 2027.
The latest purchases were funded through at-the-market sales of Strategy’s Class A common stock (MSTR) and its perpetual preferred shares, including Strike (STRK) and Stretch (STRC). In total, the company’s ATM program for its STRK, STRC, STRF, and STRD preferred shares complements its 42/42 plan.
According to Bitcoin Treasuries data, 194 publicly traded companies mirror Strategy’s BTC accumulation method. Among the top ten, excluding Saylor’s firm, are MARA, Tether-backed Twenty One, Metaplanet, Adam Back, Cantor Fitzgerald-backed Bitcoin Standard Treasury Company, Bullish, Riot Platform, Coinbase, Hut 8, and CleanSpark. These companies’ holdings range from 53,250 BTC to 13,099 coins.
Strategy’s Bitcoin Play Sets Corporate Standard
Notably, Strategy’s approach to BTC has become a model for other public companies exploring digital asset reserves. As the firm treats BTC as a long-term reserve asset, it holds the philosophy of sustained accumulation, despite market volatility.
This tactic has inspired other corporate firms to accumulate digital assets, including Bitcoin, as part of their reserve. Besides BTC, companies like BitMine, the Ether Machine and ETHZilla are actively accumulating Ethereum to establish their Ether reserves. In addition, there are also companies exploring other altcoins like XRP, Solana, and HBAR.
Several other players, like global governments, also hold large Bitcoin treasuries. For instance, the US and China hold BTC obtained through seizures. Bitcoin ETFs also hold a significant portion of the coin on behalf of investors.
These increased digital currency accumulations by institutions have a significant but multifaceted impact on the broader market. While buying activity can put upward pressure on crypto prices, it also raises concerns of increased volatility.
