Strategy, formerly known as MicroStrategy, has crossed a major milestone in its Bitcoin accumulation strategy, officially surpassing 500,000 BTC in total holdings. According to a recent 8-K filing with the U.S. Securities and Exchange Commission, the firm added another 6,911 BTC between March 17 and March 23, at an average purchase price of $84,529 per Bitcoin, totaling approximately $584.1 million.
This latest acquisition brings Strategy’s total Bitcoin holdings to 506,137 BTC, now valued at over $44 billion at current market prices. The company’s total investment stands at around $33.7 billion, averaging $66,608 per Bitcoin when factoring in all fees and expenses.
Co-founder and Executive Chairman Michael Saylor highlighted the scale of the company’s commitment, noting that Strategy now holds roughly 2.4% of Bitcoin’s fixed supply of 21 million coins—solidifying its position as one of the largest institutional holders of the digital asset.
Financial Maneuvers to Fund Bitcoin Purchases
A series of sizable capital-raising initiatives back strategy’s aggressive Bitcoin acquisition drive. Most recently, the company expanded its Series A Perpetual Strife Preferred Stock (STRF) offering, increasing the deal size from an initial $500 million to $722.5 million. This capital injection was finalized just days before Strategy’s latest Bitcoin purchase.
In parallel, the firm continues to pursue its broader fundraising strategy, including the issuance of its perpetual strike preferred stock (STRK). Earlier this month, Strategy disclosed plans to raise up to $21 billion via STRK. So far, approximately $1.1 million has been raised by selling 13,100 STRK shares, leaving nearly $21 billion worth of shares available for future issuance.
These offerings are key components of Strategy’s larger “21/21 Plan,” which aims to raise a total of $42 billion through a combination of equity offerings and fixed-income instruments specifically earmarked for Bitcoin acquisitions. Last week, the company further bolstered its capital reserves by selling 1,975,000 shares of MSTR stock, bringing in around $592.6 million. As of March 23, $3.57 billion worth of MSTR shares remain authorized for issuance under the plan.
This multi-pronged capital strategy reflects Strategy’s long-term commitment to cementing its position as one of Bitcoin’s largest corporate holders, underscoring the growing trend of corporations intertwining their balance sheets with cryptocurrency assets.
Market Implications and Industry Trends
MicroStrategy’s substantial Bitcoin holdings have positioned it as a de facto Bitcoin investment vehicle, influencing its stock performance in tandem with Bitcoin’s price fluctuations. This strategy mirrors a growing inclination among corporations to adopt Bitcoin as a treasury asset, seeking diversification and potential hedging against inflation.
Despite its growing Bitcoin reserve, Strategy’s $79.2 billion market cap consistently trades at a notable premium to the net asset value (NAV) of its Bitcoin holdings. While some investors view the stock as a direct proxy for Bitcoin exposure, others have expressed caution over the firm’s aggressive and increasingly frequent acquisition strategies. The premium valuation has raised questions about the sustainability of the company’s approach and the inherent risks tied to its crypto-heavy balance sheet.
Shares of Strategy’s Class A common stock (MSTR) closed up 0.6% at $304 last Friday and have climbed another 4.9% in pre-market trading this Monday. Over the past year, MSTR has surged more than 90%, though it shows only modest growth of 1.3% year-to-date.
Quick Facts:
- Strategy, formerly MicroStrategy, now holds 506,137 BTC after acquiring an additional 6,911 BTC worth $584.1 million.
- The company’s total Bitcoin investment stands at approximately $33.7 billion, with an average purchase price of $66,608 per Bitcoin.
- Strategy’s holdings represent about 2.4% of Bitcoin’s total capped supply of 21 million coins.
- The company’s Bitcoin reserves are currently valued at over $44 billion, making it one of the largest institutional holders globally.
