Strategy (NASDAQ: MSTR) bought another USD$1.05 billion worth of bitcoin, continuing a longstanding investment pattern in the chief cryptocurrency that’s gone on for years.
The company reported this in a Monday filing to the Securities and Exchange Commission.
As a result, company shares fell 0.4 per cent in early trading after a small spike of 1.4 per cent with the broader S&P 500 index rising 1 per cent.
Strategy acquired 10,100 bitcoins between June 9 and June 15. As of its latest filing, the company has spent nearly USD$42 billion to purchase over 592,000 bitcoins since it made its first buy on August 10, 2020.
During that period, the stock has surged approximately 3,000 per cent. In contrast, the S&P 500 gained just 78 per cent.
Additionally, executive chairman Michael Saylor reaffirmed the company’s approach during its May 1 earnings call. He told investors that Strategy plans to “buy and hold BTC indefinitely.”
“We’re going to promote global adoption of BTC as a treasury reserve asset,” he said.
Other companies have started to follow Strategy’s approach, using a mix of debt and equity to add bitcoin to their balance sheets. They hope to mirror Strategy’s stock price success.
That outcome, however, isn’t guaranteed. For example, GameStop Corp (NYSE: GME) fell 10 per cent immediately after announcing a $500 million bitcoin purchase.
Trump Media (NASDAQ: DJT) also dropped more than 10 per cent after revealing plans to raise $2.5 billion for a bitcoin treasury.
Additionally, bitcoin’s volatility poses serious risks. Smaller firms could face bankruptcy if the cryptocurrency’s value suddenly crashes.
Read more: Riot Platforms sells off large stake of Bitfarms
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Volatile stocks open appeal to options traders
However, in Strategy’s case, Saylor argued that volatility benefits investors.
“What we have done is we have created a volatility engine,” Saylor said.
“When you take volatility, when you take a fire and you cultivate it, it becomes a furnace. And if you’re smart, you make it a reactor and it becomes a power plant.”
Additionally, volatile stocks often appeal to options traders. They can collect higher premiums when price swings are large and frequent.
“Of course, what we’re doing is creating a crypto reactor that could run for a long, long period of time,” he added.
Saylor has become one of Bitcoin’s most vocal and committed advocates. Since first buying the cryptocurrency in August 2020, he has steadily increased the company’s holdings, often using a combination of debt offerings and equity sales to fund purchases. His conviction remains firm despite Bitcoin’s volatility and the broader market’s skepticism.
Saylor frames Bitcoin not as a speculative asset, but as a superior form of money. It protects against inflation and currency debasement. He has repeatedly described Bitcoin as “digital gold,” arguing it offers better long-term security than cash or traditional assets.
Over the years, he has turned Strategy into a proxy for Bitcoin itself. Investors now view the company’s stock as a leveraged bet on the cryptocurrency. Additionally, Saylor has frequently stated that Strategy has no plans to sell, reinforcing his “buy and hold” philosophy. His bold moves continue to shape corporate Bitcoin adoption.
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