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Strategy announces 1,054 BTC purchase; price per Bitcoin now over $70K

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Strategy bought another 1,054 BTC, extending the trend of relatively small, sustained purchases. The average price for the firm’s holdings is now $70,086, after several weeks of buying above $100,000. 

Strategy announced its latest weekly round of BTC purchases, this time adding 1,054 BTC. The last two weeks added under 2,000 BTC to the company’s treasury, raising the average purchase price to $70,086. In total, the Saylor-led firm also spent over $40B to date, while still seeking financing to add more BTC. 

The weekly purchases are not tied to specific BTC dips and often lead to price expansion. However, the size of purchases corresponds to the sale of one or more types of Strategy stock

The latest purchase follows the placement of $62.7M in STRK and $43.3M in STRF shares. No new MSTR shares were registered, per the latest filing

Strategy buys another 1,054 BTC, average price now above $70K
Strategy raised $112M per its latest filing, with no new MSTR common stock sold, avoiding the dilution of BTC per share. | Source: Strategy filings

Since no new MSTR common stock was sold in the latest round, Strategy is still a leader by a factor of 10 when it comes to BTC per share. The company holds 0.02 BTC per share, though not all stock buyers have a claim on the treasury in the case of emergency compensation. 

From June 10 onward, Strategy will launch the sale of STRD, a new type of high-risk perpetual stock with a non-mandatory 10% dividend. The new shares are riskier in terms of returns and compensation, but may boost the sales of STRF and STRK. 

Strategy still inspires other BTC buyers

Strategy continues to influence other companies, starting even with minimal BTC purchases. Only 26 other corporate holders have more than 1,000 BTC in their treasuries, with most of them retaining legacy holdings. Just seven entities hold more than 10,000 BTC, despite the on-chain evidence of close to 2,000 top whale wallets with even bigger holdings. 

In the past week, five other companies bought more BTC, while also using the purchase announcement to boost their social media presence. Already, 124 public companies have announced some form of BTC treasury, with even more setting up expectations of future purchases. 

Even with the relatively slow purchases, large-scale entities already hold 3.4M BTC, which by all indications will remain off the market. The corporate purchases, miner holdings and no more sales from government wallets also diminish the amount of easily available BTC. 

The latest data shows OTC desks only hold 123.5K BTC, down from 236K about a month ago. OTC desks are key for supplying ETFs, as well as potential corporate buyers. Coinbase Prime retains 63,537 BTC for sale, in addition to a falling balance on exchanges. 

Ahead of the latest Strategy announcement, BTC also rallied above $107,000 within an hour. The leading coin traded at $107,975, rising above the latest purchase price. MSTR recovered to $374.47, partially compensating for the fall of Tesla (TSLA). 

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