Strategy Seeks Third Bitcoin Purchase in August, Holdings Top $72 Billion

Strategy, a corporate Bitcoin buyer, is preparing its third purchase this month, adding to its $72 billion holdings. The firm's latest buy was on Aug. 18, bringing its total to 629,376 BTC. Since adopting its Bitcoin strategy, Strategy's stock has become highly correlated with the cryptocurrency's price swings.

Strategy, a prominent corporate Bitcoin buyer, is set to make its third acquisition of the cryptocurrency in August, adding to its substantial holdings. The company's latest purchase, which occurred on August 18, brought its total Bitcoin (BTC) holdings to 629,376 BTC, valued at over $72 billion at current prices [1].

The company's Bitcoin strategy has been relatively modest this month, with only 585 BTC acquired across two transactions. However, this pales in comparison to Strategy's typical purchases of thousands or tens of thousands of BTC at a time. Despite the smaller acquisitions, Strategy remains the largest corporate holder of Bitcoin by a wide margin [1].

Strategy's Bitcoin strategy began in August 2020 with an initial $250 million purchase and has since grown through a mix of cash purchases, convertible bond offerings, and share sales. The company's largest single-month buy came in February 2021, when it acquired more than 19,400 BTC for about $1 billion [2].

Michael Saylor, co-founder of Strategy, has been an advocate for Bitcoin, often referring to it as "digital gold" and a superior long-term store of value compared to U.S. Treasuries or cash. He has lobbied regulators and accounting boards to adjust corporate reporting rules for digital assets [2].

The company's corporate treasurer, Shirish Jajodia, has stated that Strategy's Bitcoin purchases do not significantly impact the cryptocurrency's market price. He noted that the company relies on over-the-counter trades and private agreements to avoid direct purchases on exchanges [1].

While Strategy's Bitcoin strategy has delivered substantial paper gains, the company's stock has faced pressure. Shares fell to about $325 on Wednesday, the lowest in nearly four months, before rebounding to $358 on Friday. Since adopting its Bitcoin strategy, Strategy's stock has become highly correlated with the cryptocurrency's price swings [1].

References:
[1] https://www.tradingview.com/news/cointelegraph:657f950fd094b:0-saylor-signals-third-consecutive-strategy-bitcoin-buy-in-august/
[2] https://financefeeds.com/strategy-eyes-third-bitcoin-purchase-in-august-as-holdings-top-72-billion/