TL;DR
- Strategy acquired 22,048 BTC for $1.92 billion, bringing its total reserves to 528,185 BTC, representing more than 2.5% of the total supply of the cryptocurrency.
- The financing came from the sale of class A shares and STRK preferred shares, raising $1.2 billion and $18.52 million, respectively.
- The company has already surpassed 500,000 BTC in its reserves, consolidating itself as the largest corporate holder of Bitcoin.
Strategy increased its Bitcoin reserves by purchasing 22,048 BTC for a total of $1.92 billion. The acquisition was made between March 24 and March 30 at an average price of $86,969 per unit. With this transaction, the company now holds 528,185 BTC, representing more than 2.5% of the total supply of the cryptocurrency. Its average purchase price is around $67,458 per BTC, accumulating an investment of approximately $35.63 billion.
The financing for this purchase came from the sale of class A shares and STRK preferred shares. Last week, Strategy raised $1.2 billion through the sale of 3,645,528 MSTR shares, and another $18.52 million from 213,807 STRK shares. The company still has $2.37 billion in MSTR shares and $20.97 billion in STRK shares available for future issuance. As previously explained, the sales are part of a plan aimed at raising up to $42 billion in capital and debt to continue accumulating Bitcoin.
Other Companies Follow Strategy’s Model
In the previous weeks, Strategy had already acquired 6,911 BTC for $584.1 million, surpassing the 500,000 BTC mark in its reserves. Its accumulation strategy has made it the largest corporate holder of Bitcoin. Week after week, the company continues to double down on its long-term bet on BTC. Other firms have also started adopting a similar strategy. GameStop recently announced the issuance of $1.3 billion in convertible bonds to finance its Bitcoin purchase.
Strategy’s market value remains around $75.4 billion, though some investors question the premium over the net value of its Bitcoin assets. Despite these doubts, analysts at Bernstein believe the company maintains a manageable debt level, with commitments below 13% and no maturities until 2028.
The Market Punishes Its Stock Model
They also estimate that its reserves could double in the next decade if the price of Bitcoin reaches $1 million by 2033. However, market volatility continues to affect Strategy’s stock performance. On Friday, its shares closed down 10.8% to $289.41, while on Monday’s pre-market, they recorded an additional drop of 3.5%.
