Strategy to Resume Bitcoin Buys After $4.2B Raise, Saylor Signals

Strategy Resumes Bitcoin Purchases After $4.2 Billion Raise, Institutional Demand Surges

  • Strategy plans to resume its Bitcoin purchases following a short pause last week.
  • The company recently raised $4.2 billion and has accumulated 597,325 BTC, worth over $70.9 billion.
  • Demand from institutional investors like Strategy is outpacing new Bitcoin supply.
  • Institutional holdings now total roughly 3.5 million BTC, with Strategy as the largest corporate holder.
  • Some experts caution that increasing debt-funded Bitcoin acquisitions may raise long-term market risks.

Strategy, a firm co-founded by Michael Saylor, will restart buying Bitcoin on Monday after pausing acquisitions for a week. The company held off on new Bitcoin purchases last week as it announced a $4.2 billion capital raise.

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Before the pause, Strategy completed 12 weeks of continuous Bitcoin accumulation, according to the company. Its most recent purchase was on June 30, when it acquired 4,980 BTC for $532 million. With this latest buy, Strategy now holds 597,325 BTC, valued at over $70.9 billion.

At the time of reporting, shares of Strategy trade at about $434 each, up more than 16% so far this month, but are still below their high of $543 per share reached in November 2024. Institutional investors such as Strategy are acquiring Bitcoin faster than it is produced by miners. This could lead to a shortage of available supply and potentially push prices higher, though some industry analysts warn that heavy borrowing to fund such acquisitions may pose long-term risks for the market.

Data from BitcoinTreasuries shows that Bitcoin treasury companies bought 159,107 BTC in the second quarter of the year, led by Strategy. Total institutional holdings now stand at about 3.5 million BTC. These include assets held by public companies, private enterprises, government organizations, pension funds, and asset managers.

In April, Adam Livingston, author of “The Great Harvest: AI, Labor, and the Bitcoin Lifeline,” said Strategy is effectively reducing available Bitcoin at a much faster pace than mining output through its rapid accumulations. Miners globally produce roughly 450 BTC per day, or about 13,500 BTC a month, while Livingston noted Strategy acquired 379,800 BTC in the last six months, averaging around 2,087 BTC daily. Livingston said in a post that this trend could position the company as a “financial superpower” in the future.

The miner reserve metric, which tracks the total Bitcoin held by mining entities, continues to decline according to recent CryptoQuant data.

Some related industry moves include Pakistan’s potential deployment of a Bitcoin reserve in decentralized finance (DeFi) for yield, as referenced in recent statements by Bilal Bin Saqib.

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