The buying momentum for Bitcoin has returned. Strategy, a major holder of corporate crypto assets, announced on Monday that it purchased over $21 million in Bitcoin last week, bringing its total holdings to approximately $70 billion.
The company is led by the flamboyant billionaire Michael Saylor. It was stated that the funds for this purchase came from the sale of over 125,000 ordinary shares, as well as the use of $500,000 in cash. The company also spent approximately $192 million to repurchase nearly 2 million shares of STRC. STRC is a type of preferred stock that pays dividends to investors regularly.
The latest purchase continued the trend of Strategy returning to Bitcoin buying, which is also the company's fifth purchase since August.
In mid-August, Bitcoin broke away from months of sideways trading and rose to around $77,000 for the first time, returning to this level for the first time since May. Since then, the price has largely remained above that level, with trades on Monday morning reaching $82,600. Prior to this, Bitcoin experienced a sharp decline, falling from a high of $126,000 in October last year to a low of $58,000 in June. During this downturn, Strategy – which holds approximately 4% of the circulating supply of Bitcoin – sold part of its position four times. As Bitcoin prices rebounded, Strategy stopped selling and began to reinvest again.
Strategy is not the only major player re-entering the Bitcoin market. Recently, other companies have also begun to add crypto assets to their balance sheets, injecting new momentum into their corporate crypto purchasing efforts.
Earlier this month, Strive, an asset management company co-founded by billionaire Vivek Ramaswamy, announced the purchase of 2,000 bitcoins for $169 million, bringing its holdings to approximately $2.4 billion. Robinhood, an encrypted trading platform led by CEO Vlad Tenev, also joined the ranks of corporate bitcoin buyers, recently disclosing an investment of $25 million in its own balance sheet. Japanese investment firm Metaplanet, the world's second-largest listed bitcoin treasury company, announced this month that it sold 10,000 bitcoins and bought 11,000 in the third quarter, to demonstrate its ability to convert its holdings into cash when needed to the credit market.
However, the company didn't just buy Bitcoin. Bitmine, a company that has transformed from a Bitcoin mining firm into an Ethereum treasury firm, announced this month that it has added approximately $41 million in cryptocurrencies to its treasury. This purchase has brought its holdings to around 6 million tokens, which is close to 5% of Ethereum's total supply.
As companies resume purchasing crypto assets, the rebound of Bitcoin has also boosted market expectations for further gains. Despite recent interest rate hikes in the United States and renewed tensions in the Middle East, Bitcoin has maintained its resilience.
Fortune Previous reports stated that analysts expected Bitcoin to rebound further before the end of the year, with one strategist predicting a rebound to around $100,000 after the summer lows.
