Strategy and Metaplanet Boost Bitcoin Holdings by 2000 BTC During Market Dip

Two prominent Bitcoin holders, Strategy and Metaplanet, have capitalized on the recent market correction to bolster their reserves. As Bitcoin's price briefly dipped near $103,000 towards the end of May, both companies made significant purchases, acquiring nearly 2,000 BTC worth approximately $200 million.

Strategy, formerly known as MicroStrategy, announced on June 2 that it had acquired 705 BTC between May 26 and May 30. The company spent $75.1 million, with an average purchase price of $106,495 per coin. This acquisition brings Strategy's total holdings to 580,955 BTC, which represents about 2.8% of Bitcoin's total supply of 21 million. Michael Saylor, Strategy's executive chairman, revealed that the firm's total cost basis is now $40.68 billion, with an average acquisition price of $70,023 per BTC. At current market prices, these holdings are valued at over $60 billion, leaving Strategy with an estimated unrealized gain of around $20 billion. Notably, this purchase was funded entirely through new at-the-market offerings for its preferred stock, STRK and STRF, without selling any common stock of its parent company, MSTR. Last week alone, Strategy raised $36.2 million by selling 353,511 STRK shares and another $38.4 million from 374,968 STRF shares, with more than $22 billion in capacity remaining under those programs.

As of early June, Strategy reported a year-to-date Bitcoin yield of 16.9% and a quarter-to-date yield of 5.4%, reflecting the growing value of its BTC treasury. Meanwhile, Tokyo-based Metaplanet revealed it had purchased another 1,088 BTC for 16.89 billion yen, or around $117.5 million. This purchase was made at an average price of 15.5 million yen, or $108,051, per coin. This latest acquisition raises Metaplanet’s total to 8,888 BTC, valued at approximately $930 million. It also aligns with the firm’s aggressive goals of acquiring 10,000 BTC this year. Metaplanet CEO Simon Gerovich stated that the firm’s second-quarter BTC yield now stands at 66.3%, with cumulative returns for the year hitting 225.4%. He added that the company aims to maintain a 35% quarterly return as it cements its position as one of the top 10 corporate Bitcoin holders worldwide.

This strategic move by both companies underscores their confidence in Bitcoin as a long-term investment. By purchasing during a market correction, they have not only increased their holdings but also potentially enhanced their returns. Strategy's ability to fund its acquisition without diluting its common stock through new at-the-market offerings for its preferred stock demonstrates a robust financial strategy. Metaplanet's aggressive acquisition goals and impressive yield figures further highlight the growing institutional interest in Bitcoin as a store of value and a hedge against inflation. As both companies continue to expand their Bitcoin reserves, they are likely to influence the broader market dynamics, potentially driving further adoption and investment in the cryptocurrency space.