Strategy is increasing its bitcoin reserves: a new purchase and risks of a policy shift
Strategy, a company known for its aggressive Bitcoin accumulation strategy, has once again expanded its cryptocurrency portfolio. Between June 8 and 14, the firm acquired 1,587 BTC for approximately $100 million. The average purchase price was $63,024 per coin.
Following this transaction, Strategy's total reserves reached 846,842 BTC. The market value of this portfolio is estimated at $56.6 billion, equivalent to roughly 4% of the total supply of the first cryptocurrency. To finance the purchase, the company used proceeds from the sale of its Class A shares, realizing $209 million from the stock sale. Under the current program, Strategy still has the ability to sell an additional $25.75 billion worth of shares. Additionally, the company increased its dollar reserves from $1 billion to $1.1 billion.
However, the situation is not entirely straightforward. Experts from Sygnum Bank highlight potential risks of a strategy shift. Previously, Strategy publicly promised not to sell Bitcoin, but now, according to analysts, it may use them to secure payments on preferred shares. This means the value of the company's securities directly depends on BTC's long-term performance. Earlier, the firm disclosed the sale of 32 BTC — its first small sale in several years — which raised questions in the market.
Against this backdrop, another company, BitMine Immersion Technologies, continues to grow its reserves, but in Ethereum. BitMine increased its Ethereum portfolio to 5.62 million ETH, representing 4.66% of the asset's total market supply. The total value of BitMine's cryptocurrency assets and cash reached $10.4 billion. The firm staked 4.7 million ETH through its own MAVAN infrastructure, with an expected annual income from this activity of approximately $269 million. The company also announced the listing of its preferred shares on the NYSE under the ticker BMNP, with the $273.8 million raised directed toward expanding operations and purchasing cryptocurrency.
My opinion: Strategy's actions are a classic example of institutional accumulation, but the recent sale of 32 BTC, though small, could be a signal that the company is beginning to test liquidity. If this trend continues, the market may perceive it as a bearish signal. BitMine, on the other hand, is betting on Ethereum and staking, which appears to be a more sustainable strategy amid growing interest in Proof-of-Stake assets.