Despite escalating Middle East tensions following news of Israeli strikes on Iranian nuclear facilities, MicroStrategy (STR) has added to its substantial Bitcoin (BTC) holdings, acquiring 10,100 coins for approximately $1 billion during the week ending June 9 (June 10).
Acquired at an average price of roughly $104,080 per coin, the purchases occurred as Bitcoin’s price fell from around $110,000 just days earlier.
This acquisition marks MicroStrategy’s second Bitcoin purchase this month, increasing its total holdings to 592,100 BTC. The company’s total investment in Bitcoin now stands at approximately $41.8 billion, acquired at an average price of $70,666 per coin.
Increase in Bitcoin YTD Yield Targets Goal
The latest purchases significantly boosted MicroStrategy’s year-to-date (YTD) Bitcoin yield to 19.1%, moving the company closer to its updated goal of achieving a 25% YTD yield by the end of 2025. This marks a nearly 100% increase in the yield compared to the same period last year, though still falling short of the 25% target. Earlier in May, MicroStrategy increased its yield target from 15%.
Quarter-to-date (QTD) yield now stands at 7.4%. Each additional Bitcoin purchase contributes positively to these metrics.
BTC Purchase Disclosure Amid Geopolitical Tensions
MicroStrategy’s corporate treasury chief announced the new Bitcoin purchases on Monday, noting the ongoing geopolitical situation in the region.
STR Stock Debuts on Nasdaq
The announcement coincides with the debut of MicroStrategy’s third Bitcoin-linked preferred stock series, designated STRD, on the Nasdaq on Wednesday. The stock’s initial public offering (IPO) aims to raise $250 million.
As part of this offering, MicroStrategy intends to issue 2.5 million shares of its 10% Series A Perpetual Stock (STRD) stock, priced at $100 per share. Proceeds will be used to purchase more Bitcoin, further expanding the company’s holdings.
Differentiate Strategy Amid Peer Activity
At the same time, MicroStrategy CEO Michael Saylor acknowledged a rival’s significant milestone. On Monday, Saylor congratulated Metaplanet, a Japanese Bitcoin-focused firm, on reaching 10,000 BTC. “To reach 10,000 Bitcoin is a major goal for Metaplanet,” Saylor acknowledged.
Industry Concerns Grow Around Corporate Bitcoin Strategy
Different commentators in the industry have sounded cautionary notes about the risks associated with significant corporate Bitcoin holdings. On Monday, VanEck’s head of digital assets research, Matthew Sigel, highlighted the threat of dilution to existing shareholders should such companies continue issuing stock to buy Bitcoin.
Previously, Standard Chartered Bank had also issued warnings about the risks associated with increasing corporate adoption of volatile digital assets like Bitcoin.
