Strategy Invests $740 Million in Bitcoin, Currently Holds Over 600,000 BTC
Strategy has executed another significant acquisition in Bitcoin. As per a July 21 SEC report, the company invested $739.8 million to obtain 6,220 Bitcoin, averaging $118,940 per token. This elevates its overall holdings to 607,770 Bitcoin. The average cost across all acquisitions is $71,756, translating to an approximate paper gain of nearly $28 billion with Bitcoin currently trading around $120,000.
Stock Sales Fund the Purchase
To facilitate this, Strategy sold 1.64 million shares of its own stock, generating roughly $736.4 million. Additionally, it secured another $3.9 million through the sale of smaller stakes. All of this fresh capital was directed straight into Bitcoin. At present token supply levels, this single acquisition accounted for nearly two weeks’ worth of new Bitcoin entering the market.
STRATEGY ACQUIRES ANOTHER 6,220 #BITCOIN FOR $739.8 MILLION#cryptonews #BTC #Altcoinnews pic.twitter.com/EcP1fQu1mi
— Crypto Empire (@Cryptoempire19) July 21, 2025
Concerns Begin to Surface
Not all observers are convinced. James Check from Checkonchain remarked that while such strategies may succeed temporarily, they could turn problematic swiftly if prices decline. Companies pursuing this model may find themselves needing to liquidate Bitcoin to maintain stock prices. This scenario would introduce increased volatility for all parties, not just the firms holding the digital currency.
Matthew Sigel from VanEck concurs that risks are present. He noted that liquidating shares when they are valued above their intrinsic worth is logical. However, if prices dip too closely to book value, flooding the crypto market with additional shares can impact long-term investors negatively. His perspective? Companies require improved guidelines regarding when to seek funding and when to pause.
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Adhering to the Blueprint
Strategy is not the sole player in this strategy. An increasing number of public companies are adopting Bitcoin as a treasury resource. They acquire funds by liquidating shares, followed by purchasing Bitcoin. When markets are thriving, it portrays them as astute. However, if trading market momentum stalls, this approach could yield adverse results. Sigel emphasizes that companies should carefully consider timing and structure before committing to this as a long-term strategy.
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It’s Also a Gamble on Bitcoin
Amid all the criticisms, such expenditures reflect genuine faith in BTC. Investing $740 million in something indicates a belief in its longevity. As Bitcoin exceeds $120,000 and the broader crypto market surpasses $4 trillion, this demonstrates that some investors perceive the trading market as evolving.
Will It Sustain?
The forthcoming months will determine whether this model can withstand pressure. If Strategy’s stock remains robust, others may emulate it. Should it begin to falter, the repercussions could compel buybacks or internal reorganizations. Regardless, the market’s gaze will be intent.
Strategy’s massive BTC acquisition positions it among the leading corporate holders globally. That $28 billion increase appears impressive, but its validity relies on the company’s ability to manage risk and maintain available volume. This could mark a pivotal moment or serve as a cautionary narrative in the making.
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Key Takeaways
- Strategy acquired 6,220 BTC for $739.8 million, increasing its total holdings to 607,770 BTC valued at approximately $73 billion at current rates.
- The firm financed its acquisition by selling 1.64 million shares and minor asset allocations, allocating every cent to BTC purchases.
- Experts caution that this strategy entails risks, particularly if share prices decline and companies must divest BTC to remain viable.
- Strategy is part of a rising trend of public corporations leveraging Bitcoin as a treasury resource by gathering funds through stock sales.
- This substantial acquisition indicates a robust long-term assurance in BTC but also raises concerns regarding market fluctuation and financial soundness.
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