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Strategy (MSTR), the largest corporate holder of bitcoin, reported in a filing to the Securities and Exchange Commission on Monday that it purchased another $1.05 billion worth of bitcoin.
Shares of Strategy, a small software company turned crypto giant chaired by crypto tycoon Michael Saylor, fell 0.4% in early trading Monday after rising as much as 1.4%, while the broader S&P 500 (^GSPC) rose 1%.
Strategy said it acquired 10,100 bitcoins between June 9 and June 15. As of its latest filing, the company has spent nearly $42 billion to buy more than 592,000 bitcoins since it first purchased the cryptocurrency on Aug. 10, 2020.
Over that time frame, the stock has risen roughly 3,000%, relative to the S&P 500’s 78% gain.
Saylor told investors during the company's May 1 earnings call that Strategy's "plan is buy and hold BTC indefinitely."
"We're going to promote global adoption of BTC as a treasury reserve asset," he said.
Other companies have begun to adopt its strategy, using a combination of debt and equity to add bitcoin to their balance sheet in the hopes of replicating Strategy's stock price success.
That doesn't always happen, though. GameStop (GME), for example, fell 10% immediately after it announced a $500 million purchase of bitcoin. Trump Media (DJT) dropped more than 10% after announcing it was raising $2.5 billion to create a bitcoin treasury. And bitcoin's volatility means smaller companies risk bankruptcy if the cryptocurrency's value suddenly drops.
In the case of Strategy, Saylor argued that the stock's volatility is a good thing for investors: "What we have done is we have created a volatility engine. When you take volatility, when you take a fire and you cultivate it, it becomes a furnace. And if you're smart, you make it a reactor and it becomes a power plant."
Options traders can collect expensive premiums for volatile stocks.
"Of course, what we're doing is creating a crypto reactor that could run for a long, long period of time," he added.
Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
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