- Strategy has acquired 22,048 BTC for $1.92 billion, bringing its total holdings to 528,185 BTC—over 2.5% of Bitcoin’s total supply.
- Funded through stock sales, the company continues its aggressive bitcoin accumulation, despite market volatility and investor concerns.
Bitcoin treasury firm Strategy (formerly MicroStrategy) has expanded its cryptocurrency holdings, acquiring an additional 22,048 BTC for approximately $1.92 billion in cash. This purchase, made at an average price of $86,969 per bitcoin, brings the company’s total bitcoin reserves to 528,185 BTC, valued at over $43 billion based on current market prices.
Aggressive Bitcoin Accumulation Continues
The latest acquisitions, disclosed in an 8-K filing with the U.S. Securities and Exchange Commission (SEC), took place between March 24 and March 30. According to Michael Saylor, Strategy’s co-founder and executive chairman, the company’s total bitcoin purchases amount to approximately $35.63 billion, with an average cost of $67,458 per BTC, including fees and expenses.
To finance its latest purchases, Strategy utilized proceeds from the sale of its class A common stock (MSTR) and perpetual strike preferred stock (STRK). Specifically:
- The company sold 3,645,528 MSTR shares for approximately $1.2 billion last week.
- $2.37 billion worth of MSTR shares remains available for future issuance and sale.
- Strategy also sold 213,807 STRK shares for approximately $18.52 million, with $20.97 billion in STRK shares still available for issuance.
This is part of the company’s broader “21/21 plan,” which aims to raise $42 billion in equity and fixed-income securities to fund its bitcoin acquisitions.
Also read: Speculation Squashed: Elon Musk Asserts US Government Has No Plans to Use Dogecoin
Following the Strategy Playbook
This latest purchase follows Strategy’s acquisition of 6,911 BTC between March 17 and March 23 for $584.1 million, at an average price of $84,529 per bitcoin. That milestone pushed the company’s bitcoin holdings past the 500,000 BTC threshold.
The firm now controls over 2.5% of Bitcoin’s total 21 million supply, making it the largest publicly traded corporate holder of bitcoin.
Growing Corporate Bitcoin Adoption
Strategy’s aggressive bitcoin investment model is inspiring other companies to follow suit. Notably, GameStop (GME), the video game retailer that gained fame during the 2021 WallStreetBets saga, recently announced its own bitcoin acquisition strategy. GameStop plans to fund its purchases through a $1.3 billion private offering of convertible senior notes.
Market Reactions and Analyst Predictions
Despite Strategy’s massive bitcoin accumulation, its stock price has faced volatility. MSTR closed down 10.8% on Friday at $289.41, reflecting broader market jitters due to hotter-than-expected inflation data and new tariff announcements. Pre-market trading on Monday showed MSTR down another 3.5%, according to TradingView.
While some investors express concerns over Strategy’s premium-to-net-asset-value (NAV) valuation, analysts at Bernstein Research remain optimistic. With debt levels under 13% and no major payments due until 2028, they believe Strategy’s leverage is manageable. Bernstein further predicts that Strategy’s bitcoin holdings could exceed 1 million BTC as the cryptocurrency approaches $1 million per BTC by 2033.
Strategy continues to solidify its status as the largest corporate bitcoin holder, demonstrating unwavering confidence in the cryptocurrency’s long-term value. As more companies explore bitcoin investments, Strategy’s approach could become a model for corporate treasury management in the digital asset era. However, with market volatility and regulatory scrutiny in play, the road ahead remains uncertain.
