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.
Arman ShirinyanEarlier 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.
Vladislav Sopov
Dan Burgin