Strategy, a name frequently heard on the institutional side of the cryptocurrency markets, continues its Bitcoin investments without slowing down. Between July 14th and 20th, the company purchased 6,220 Bitcoins for a total of $739.8 million in cash. This purchase, made at an average unit price of $118,940, increased Strategy's BTC holdings to 607,770. Thus, the firm's total Bitcoin investment volume exceeded $43.61 billion, while the market value of its assets reached approximately $71.6 billion.
This new purchase was formalized in an 8-K form filed with the U.S. Securities and Exchange Commission (SEC) on July 21st. Strategy had previously attracted attention with its purchase of 4,225 BTC. The company announced that it financed this transaction with a convertible bond issuance in February and excess operational cash reserves.
On the Road to Becoming a Cash King
Strategy's Bitcoin reserves have gained a significant position not only in the crypto market but also in the world of traditional finance (TradFi). According to the company's internal analysis, the value of its BTC holdings puts it in the top 10 of the S&P 500 companies in terms of cash and cash equivalents. According to this ranking, Strategy, with approximately $71 billion in BTC reserves, ranks just behind General Motors' $89 billion in cash assets and ahead of ExxonMobil's $67 billion.
According to shared charts, Strategy's Bitcoin reserves have surpassed the balance sheet liquidity of Alphabet, Amazon, and even some major energy giants. Once considered niche, cryptocurrency investment now appears poised to rival the cash reserve strategies of the largest companies.
Is Bitcoin "digital property"?
The company's chairman, Michael Saylor, has long described Bitcoin as "digital property" and a superior store of value compared to cash or Treasury bonds. Strategy continues this strategy by announcing a new BTC purchase almost every Monday. These purchases are financed by the company's operating revenues, stock sales, and occasionally bond issuances.
Other institutional players have fallen behind
Strategy's aggressive investment approach has inspired other public companies. According to data from The Block, 141 companies, including MARA, Twenty One, Riot Platforms, and Metaplanet, hold BTC reserves of varying sizes. However, none of their portfolios compare to Strategy's. The company's Bitcoin holdings represent approximately 3% of the total supply of 21 million Bitcoins.
Investment bank TD Cowen raised Strategy's share price target from $590 to $680. This revision is based on the bank's prediction that the Bitcoin price will reach $155,000 by December 2025. Following the news, Strategy shares gained nearly 2% in pre-market trading, trading at $429. Bitcoin, meanwhile, is trading sideways at $118,301 at the time of writing.
