Strategy co-founder Michael Saylor signaled an impending Bitcoin (BTC) purchase on Sunday, as the companyโs total holdings crossed $71 billion.
The treasury companyโs most recent purchase occurred on July 14, when it bought 4,225 BTC for $472.5 million, bringing its total holdings to 601,550 BTC, valued at over $71.4 billion.
The company is up about 66.5% on its Bitcoin investment, accounting for over $28.5 billion in unrealized gains, according to SaylorTracker.
Bitcoin treasury companies, led by Strategy, continue to be one of the main drivers of Bitcoin demand in the current market cycle, alongside exchange-traded funds (ETFs), institutional investors, and centralized crypto exchanges.
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Strategyโs valuation surges alongside $4 trillion total crypto market cap
The companyโs stock surged by about 21.52% in the last month, bringing Strategyโs total valuation to over $118 billion.ย
Strategyโs stock rally came amid a rise in the crypto market, with the total crypto market capitalization crossing the $4 trillion mark in July and Bitcoin hitting a new all-time high.
In December 2024, the BTC treasury company entered the Nasdaq 100 stock market index as institutional demand for Strategyโs stock grew.
Certain institutional investors want exposure to Bitcoin but cannot hold Bitcoin directly in their investment funds. These investors hold shares of Bitcoin treasury companies or purchase their corporate debt products as a proxy for holding BTC.
โThere are trillions of dollars of managed capital, and some of that has strict mandates associated with it,โ macroeconomist Lyn Alden wrote.ย
โThere are stock funds where the portfolio manager can only buy stocks. He or she cannot buy bonds, ETFs, or commodities,โ Alden gave as an example of the types of restrictions placed on asset managers.
Vanguard, one of the biggest institutional investment firms, has long opposed holding Bitcoin or offering Bitcoin directly to clients, but now holds 20 million shares of Strategy, or about 8% of the companyโs outstanding stock.
The investment firmโs indirect exposure to Bitcoin through a publicly traded company highlights Bitcoinโs integration into traditional finance through legacy investment vehicles.
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