Institutions buy more Bitcoin despite recent market dip; Strategy, Metaplanet boost BTC holdings

Bitcoin (BTC) is down 0.5% on Monday, trading at $104,800 despite corporate firms Strategy and Metaplanet boosting their BTC holdings. Meanwhile, Hong Kong-based Reitar Logtech Holdings plans to purchase up to $1.5 billion worth of BTC to establish its Bitcoin treasury reserve.

Institutions expand their BTC holdings amid price dip

Business intelligence firm Strategy revealed it purchased 705 Bitcoin for $75.1 million at an average price of $106,495 per BTC. The company now holds 580,955 BTC, acquired at an aggregate price of $40.7 billion.

In its latest purchase, Strategy leveraged $74.6 million in proceeds from its STRF and STRK at-the-market (ATM) stock offerings between May 26 and June 1, according to a form 8-K submission with the Securities and Exchange Commission (SEC) on Monday. It also constitutes one of Strategy's lowest Bitcoin acquisitions on record and is the smallest purchase since March.

Following the disclosure, Strategy unveiled plans to offer 2.5 million shares of its 10% Series A Perpetual Stride Preferred Stock (STRD) to purchase additional Bitcoin.

Notably, Strategy has seen a decline in its buying power compared to its peak in November and December. K33 Research analysts attributed the drop to the declining premium for Strategy's MSTR Class A common stock compared to its Bitcoin holdings.

It also noted a rising competition in the treasury reserve race among corporate entities. More companies are looking to increase their Bitcoin stakes, including Semler Scientific, Metaplanet and Trump Media Group, which raised $2.3 billion to establish a Bitcoin reserve.

Metaplanet scooped up an additional 1,088 Bitcoin for $117.1 million at an average price of $107,771 per BTC. The Japanese firm now holds 8,888 BTC, acquired at an average price of $93,354 per BTC.

Meanwhile, Hong Kong-based real estate and logistics company Reitar Logtech announced plans to purchase up to $1.5 billion in Bitcoin as part of its treasury diversification strategy, as per an SEC filing on Monday.

"This strategic treasury diversification initiative underscores our commitment to maintaining a strong financial foundation while scaling our global logistics technology platform," said John Chan, Chairman and CEO of Reitar Logtech, in the filing.

The company stated that it aims to utilize the Bitcoin treasury to strengthen its balance sheet while expanding its global presence. It also noted that the Bitcoin reserve would allow it to engage in future projects that may require the use of digital assets.

Bitcoin is trading at $104,800 at press time, down 0.5% on the day despite the announcement. 

The decline follows Bitcoin investment products breaking their six-week inflow run last week after recording $8 million in outflows, according to CoinShares' weekly digital asset fund flows report. Notably, BlackRock's iShares Bitcoin Trust (IBIT) broke its 34-day inflow streak on Friday after experiencing outflows totaling $430.8 million, according to SoSoValue data.