Investors are closely monitoring Strategy, previously known as MicroStrategy, for signs it may increase its Bitcoin holdings, potentially surpassing BlackRock’s IBIT. This anticipation stems from a pattern where cryptic statements by Michael Saylor precede regulatory disclosures of new purchases.
On April 19, Saylor shared a screenshot of the company’s Bitcoin tracker on X with the caption ‘Think Even ₿igger.’ Historically, such posts hint at imminent acquisitions disclosed in official filings.
The significance lies in Strategy’s recent funding of its last Bitcoin purchase through STRC, its Variable Rate Series A Perpetual Stretch Preferred Stock. Last week, it acquired 13,927 BTC at an average price of $71,902 per coin, costing approximately $1 billion, fully funded by selling $1 billion worth of STRC as per SEC filings.
This acquisition increased Strategy’s total Bitcoin reserves to 780,897 BTC, valued over $59 billion. As the largest corporate Bitcoin holder globally, its weekly updates are keenly watched.
STRC’s design aims for a near $100 par value, offering dividends at an annualized rate of 11.5%, resetting monthly. Recently, Strategy suggested shifting to semi-monthly dividends to enhance liquidity and price stability.
Bitwise advisor Jeff Park noted, ‘STRC attempting to offer semi-monthly dividend is a revolutionary moment…’ suggesting it could raise capital for larger Bitcoin purchases. CryptoSlate reported STRC’s trading volume exceeded $1 billion over two consecutive days last week, hinting at potential funds for another significant acquisition.
Estimates from Bitcoin for Corporations suggest Strategy might purchase nearly 30,000 BTC, boosting STRC’s market cap by about $2 billion.
If realized, this could position Strategy to surpass BlackRock’s IBIT holdings of 798,026 BTC. Currently holding 780,897 BTC, Strategy needs over 20,000 additional BTC to lead in total holdings, potentially becoming the second-largest Bitcoin holder after Satoshi Nakamoto’s pseudonymous reserve.
This potential overtaking would symbolize a notable shift in Bitcoin ownership dynamics, intensifying competition for exposure among major investors. The market awaits Strategy’s next SEC filing on April 20 for confirmation of these developments.