Strategy Acquires 10,100 BTC Amid Israel-Iran Tensions

Business intelligence company Strategy acquired 10,100 Bitcoin for approximately $1.05 billion during the week ending June 15, paying an average price of $104,080 per coin. The company disclosed the acquisition on June 16. The purchase brings Strategy's total Bitcoin holdings to 592,100 BTC, valued at $41.84 billion. The company's average cost basis across all holdings now stands at $70,666 per bitcoin.

Market Timing and Strategy

The acquisition followed a sharp drop in Bitcoin’s price from $110,000 to $103,639 on June 12, triggered by reports of Israeli strikes on Iranian nuclear facilities. Strategy used the volatility as a buying opportunity, continuing its BTC accumulation strategy.

The acquisition marks Strategy's second Bitcoin purchase in June and continues the company's accumulation pattern that began in August 2020. Year-to-date, Strategy reports a 19.1% return on its Bitcoin holdings. On June 11, three days before announcing the latest purchase, Strategy launched STRD on Nasdaq. The bitcoin-backed preferred stock offers a 10% dividend yield and targets $250 million in new capital for additional Bitcoin purchases.

Positioning and Vision

Strategy operates as a business intelligence company and holds the largest corporate Bitcoin treasury globally. The company accumulates Bitcoin through multiple funding methods, including debt offerings, equity raises, and cash flow from operations. Strategy's Bitcoin holdings now represent approximately 1.85% of Bitcoin's total circulating supply of 19.7 million coins.

Executive Chairman Michael Saylor has led the company's Bitcoin acquisition program since 2020. He remains a prominent advocate for Bitcoin, describing it as “digital gold” and a strategic shield against inflation and fiat currency depreciation.

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