Strategy Acquires 6,500 Bitcoin, Boosting Holdings to $47 Billion

Strategy, formerly MicroStrategy, enhanced its Bitcoin holdings to 538,000 coins worth $47.2 billion after acquiring 6,500 Bitcoin for $556 million. The purchase utilised funds from two equity offerings. Despite market uncertainties, the firm has shown consistent buying behaviour. It has significant institutional ownership and was added to the Nasdaq 100 last December, potentially paving the way for future S&P 500 inclusion.

In recent developments, Strategy, previously known as MicroStrategy, acquired 6,500 Bitcoin last week at a cost of $556 million, significantly enhancing its Bitcoin holdings. As a result, the firm based in Tysons, Virginia, now possesses 538,000 Bitcoin, valued at approximately $47.2 billion due to Bitcoin surpassing $88,000. The Bitcoin purchase was executed at an average price of $84,800 per coin.

The acquisition was funded through proceeds from two recent equity offerings, which netted Strategy $548 million from the issuance of Class A common shares and an additional $8 million from its perpetual “STRK” preferred stock sales. Despite prevailing uncertainty in the market linked to U.S. trade policies, Strategy has consistently invested in Bitcoin, having made purchases on five out of the last six Mondays since mid-March.

Strategy’s buying patterns have varied; after an initial purchase of $11 million in mid-March, the company made a substantial investment of $1.9 billion shortly thereafter. Currently, Strategy’s shares are trading around $322, reflecting a 1.6% increase for the day, although it has experienced fluctuations from $328 to a low of $317 post-market opening.

Michael Saylor, Strategy’s co-founder, highlighted that the company is no longer merely a niche option for Bitcoin investment on social media, pointing out the significant institutional interest with 13,000 institutions and 814,000 retail accounts holding shares. Furthermore, Saylor indicated that 55 million investors indirectly own Strategy stock through various financial vehicles such as ETFs and mutual funds.

Strategy was included in the Nasdaq 100 index last December, aligning it with major tech corporations. While there is potential for future inclusion in the S&P 500, the company faces challenges regarding profitability that currently hinder its eligibility based on standard criteria.