#How did Strategy surpass BlackRock in Bitcoin holdings?
Strategy, recognized as the largest corporate Bitcoin treasury, recently reclaimed its position ahead of BlackRock’s iShares Bitcoin Trust regarding Bitcoin holdings. This change came after Strategy announced a substantial purchase of 34,164 BTC for approximately $2.54 billion, averaging $74,395 per coin. As of April 20, this purchase increased Strategy's total holdings to 815,061 BTC, allowing it to surpass BlackRock’s holdings of 802,824 BTC by about 12,200 BTC.
Understanding this context is key. Strategy's total Bitcoin accumulation stands at a staggering $61.56 billion, with an average acquisition cost of $75,527 per coin. With Bitcoin trading close to $76,000 during this report, Strategy's position reflects a slight unrealized profit.
#What drove this shift in Bitcoin holdings?
The dynamics of Strategy and BlackRock’s holdings have experienced significant changes. Earlier this year, in early 2024, IBIT overtook Strategy and maintained that lead for a considerable duration, largely due to a surge in ETF inflows. Initially, in the first quarter of 2024, Strategy possessed 189,150 BTC, while IBIT had surged to about 273,000 BTC by early in the second quarter, maintaining its lead until Strategy's recent buying spree reversed the trend.
During Bitcoin's latest price retracement, Strategy intensified its Bitcoin acquisition. Before this announcement, the company had added nearly 80,000 BTC in 2026. The latest purchase was primarily funded through a capital raise in the market, demonstrating a strategic approach to leveraging favorable market conditions.
#How is Strategy funding its Bitcoin purchases?
The funding for Strategy’s recent acquisition is noteworthy. In its latest 8 K filing, the firm reported the sale of 21,795,389 shares of its STRC perpetual preferred stock, which generated about $2.18 billion in net proceeds during the week of April 13 to April 19. Additionally, the firm raised another $366 million through sales of MSTR shares. These capital-raising activities illuminate how Strategy strategically positions itself to enhance its Bitcoin holdings, reflecting a calculated and proactive investment approach.