Strategy Inc. Boosts Bitcoin Holdings by 4,980 BTC, 19.7% YTD Return

Strategy Inc., a prominent player in the corporate world, has made a significant move by acquiring 4,980 BTC, valued at $531.9 million. This purchase has bolstered the company's Bitcoin-centered corporate reserve approach, bringing its total Bitcoin holdings to 597,325 BTC. At current market prices, this reserve is valued at approximately $63.3 billion, reinforcing Bitcoin's position as a corporate asset class. The company’s year-to-date return from this approach stands at 19.7%, which continues to reinforce Bitcoin’s position as a treasury reserve asset for corporations.

This strategic acquisition has propelled Strategy Inc. into the Russell Top 200 Value Index, which includes the 200 largest publicly traded companies in the United States based on market capitalization. The index, managed by FTSE Russell, serves as a benchmark for large institutional funds, with companies like Apple, Amazon, and Microsoft also listed. The addition of Strategy Inc. to this index may influence fund composition and passive capital flows, as the Russell Top 200 Index is part of the broader Russell 3000 series, representing over 60% of the U.S. equity market’s total capitalization. It is often used as a reference point for ETFs and mutual funds with a large-cap focus. One such product is the iShares Russell Top 200 ETF, which manages around $1.71 billion in assets.

Over the past twelve months, Strategy’s stock price has increased by 157%, moving in parallel with the rise in bitcoin’s market value. The company’s shares are currently trading at $390. As the second quarter closes, Strategy’s market capitalization is estimated between $107 billion and $109 billion. This valuation places the company within range for potential inclusion in the S&P 500 Index. Analyst Jeff Walton estimates a 98.2% probability that Strategy meets the technical requirements for S&P 500 entry. Despite this, index membership is not automatic and depends on further decisions by index managers.

The firm’s Bitcoin holdings also link its valuation to the behavior of crypto markets. Pete Rizzo commented on social media that passive capital could indirectly flow into BTC due to the company’s structure. However, he acknowledged that volatility may temper any such effect. This historic shift underscores the growing acceptance of Bitcoin as a legitimate corporate asset, potentially paving the way for more companies to adopt similar strategies in the future.