War Concerns Spur $1 Billion Bitcoin Purchase by Strategy, Boosting Treasury

Summary: Amid geopolitical tensions, Strategy has added 10,100 Bitcoin to its holdings in a $1 billion acquisition. The company now holds over 592,000 BTC, positioning itself as one of the largest corporate holders of Bitcoin globally.

Geopolitical Turmoil Sparks Strategic Accumulation

Strategy confirmed the purchase of 10,100 BTC at an average price of $104,080 per coin, totaling approximately $1 billion. The acquisition followed Bitcoin’s drop from $110,000 on June 9 to a low of $103,550 on June 12, amid heightened tensions in the Middle East following reports of Israeli strikes on Iranian nuclear facilities.

Near 600,000 BTC in Corporate Treasury

The purchase marks Strategy’s second Bitcoin acquisition this month and brings the company’s total holdings to approximately 592,100 BTC. The average acquisition price now stands at $70,666 per coin, with total investment exceeding $41.8 billion. Strategy continues its “buy the dip” strategy, capitalizing on short-term price dips to expand its holdings.

Preferred Share Offering to Support Further Buys

On June 11, Strategy launched its new STRD shares on Nasdaq, aiming to raise $250 million through a preferred stock issuance. The company plans to sell 2.5 million shares of its 10% Series A Perpetual Stride Preferred Stock at $100 each. Proceeds are earmarked for further Bitcoin purchases, allowing the firm to expand its position without drawing from cash reserves.

Yield Performance and Future Targets

Strategy reports a year-to-date Bitcoin yield of 19.1%, up from 17.1% following last week’s Bitcoin purchase. Its quarter-to-date yield sits at 7.5%. The company has raised its end-of-2025 yield target from 15% to 25%, a goal that hinges on continued upward price momentum in the coming months.

Wider Industry Perspectives

CEO Michael Saylor praised Metaplanet’s recent milestone of reaching 10,000 BTC in holdings, highlighting the efforts of CEO Simon Gerovich and director Dylan LeClair. Meanwhile, VanEck’s Matthew Sigel cautioned that large corporate Bitcoin purchases might pose dilution risks if stock prices trade near net asset value. Standard Chartered also reiterated concerns over Bitcoin’s volatility earlier this month.

Outlook: Strategic Bet on Volatility

Strategy’s aggressive accumulation continues to reflect its long-term bullish outlook on Bitcoin. The preferred stock funding structure provides flexibility for future acquisitions, albeit at a cost—namely, the 10% dividend burden. Should Bitcoin maintain six-figure territory, the gamble may pay off handsomely. However, market pullbacks could test the sustainability of the firm’s high-yield obligations.

Investors will closely monitor yield performance, Bitcoin’s price trajectory, and further updates from Strategy as it builds one of the most significant Bitcoin corporate treasuries to date.

Featured image via Money Times, chart via TradingView