Bitcoin software and investment company Strategy has further strengthened its position in the crypto market by increasing its US dollar cash reserves to $1.4 billion while adding to its Bitcoin holdings with the latest purchase of 520 BTC.
The move demonstrates the Michael Saylor-led company’s continued confidence in the long-term potential of the world’s largest digital asset.
According to a filing with the US Securities and Exchange Commission (SEC), Strategy bought 520 Bitcoins worth $34.9 million between June 15 and June 22 at an average price of $67,068 per unit.
With the latest purchase, the company’s total Bitcoin holdings now stand at 847,363 BTC, making Strategy the world’s largest corporate Bitcoin holder.
Since instituting its Bitcoin accumulation strategy, the company has spent approximately $64.1 billion with an average purchase cost of $75,651 per Bitcoin.
At the same time, Strategy also added $300 million to its US dollar cash reserves, bringing its total cash reserves to $1.4 billion.
The fund aims to ensure the company has sufficient liquidity to pay dividends and meet debt obligations.
The Bitcoin purchase and the increase in cash reserves were financed by the sale of MSTR common shares through an at-the-market (ATM) program.
During the period, Strategy managed to raise $335.5 million from the sale of the shares.
Although MSTR shares fell 3.46% to US$112.53 and STRC permanent preferred shares fell below the $90 level, market observers see Strategy's financing structure still able to support the company's stability.
The company's aggressive move also continues to draw attention because the model used is now increasingly being referenced by other companies that want to make Bitcoin their main reserve asset.
