Business intelligence firm Strategy has acquired an additional 6,911 Bitcoins, according to a Monday regulatory filing.
The company financed the purchase by selling its common stock in an at-the-market (ATM) offering.
Last Monday, the company announced a relatively tiny $10.7 million purchase that raised some eyebrows within the community after previously breaking its buying streak.
The company's average purchasing price is now approaching the $67,000 mark.
With its most recent purchase, the company's total holdings have now surpassed 500,000 Bitcoins. It took Strategy (formerly known as MicroStrategy) almost five years to achieve such a groundbreaking milestone. It announced its first Bitcoin purchase back in August 2020.
Earlier on Monday, Bitcoin reached an intraday high of $87,839, surging by nearly 4% in 24 hours.
Strategy's shares are up by more than 5% in premarket trading following its most recent announcement. That said, they are only up by 1.33% on the year-to-date basis.
Strategy's Strife offering
On Friday, the company revealed that it had secured $711 million for additional Bitcoin purchases with Strife (STRF), its most recent preferred stock offering that was announced earlier this month. STRF offers a 10% annual dividend rate, and some skeptics have questioned whether the company would actually be able to cover its dividend obligations. "You operate a money-losing, terrible software business with only $460 million in sales and are committing to a 10% *CASH* dividend on a preferred? So, you will either need to sell the precious Bitcoin or raise new capital to pay the dividend?" investor Christopher Bloomstran said on X.
This $711 million offering is expected to settle on Tuesday, meaning that Strategy is likely to announce another massive purchase in the near future.
Arman Shirinyan
Dan Burgin
Alex Dovbnya
Caroline Amosun