Strategy, formerly MicroStrategy, has acquired an additional 15,355 Bitcoin for $1.42 billion, raising its total holdings to 553,555 BTC valued at over $52 billion. The firm’s average purchase price is now $68,459 per Bitcoin. This comes amid rising competition in the corporate Bitcoin space. Strategy funded the purchase through stock sales, and its stock has seen significant gains in recent months.
Strategy, previously known as MicroStrategy, has recently acquired 15,355 additional Bitcoin, spending roughly $1.42 billion in the process. This purchase, disclosed in an SEC filing on Monday, comes at an average price of about $92,737 per Bitcoin. With this latest acquisition, the company’s total Bitcoin holdings have now surged to 553,555 BTC, valued at more than $52 billion based on current Bitcoin prices, which are hovering just above $95,000.
This increase in holdings means that Strategy’s average cumulative purchase price has now risen to $68,459 per Bitcoin, which translates to a total investment figure nearing $37.9 billion when accounting for all associated fees. It’s noteworthy that these holdings make up over 2.6% of the total Bitcoin supply cap of 21 million coins.
Meanwhile, the market for corporate Bitcoin accumulation is becoming quite competitive. Recent announcements from firms like Cantor Fitzgerald and SoftBank indicate a commitment to a new $3.6 billion Bitcoin project. On top of that, emerging players like Twenty One Capital, which is spearheaded by Strike CEO Jack Mallers, are implementing distinct Bitcoin-focused strategies.
In terms of stock performance, shares of Strategy’s MSTR saw an increase of 5.2%, finishing at $368.71 on Friday. In pre-market trading on Monday, the shares further climbed by 1.42%. This uptick brings the year-to-date growth of the stock close to 23%, a rise largely attributed to Bitcoin’s recent price surge and the growing institutional interest in Bitcoin-centric companies.
The funds for the latest Bitcoin purchase were generated from the sale of Class A common stock and perpetual preferred stock. Between April 21 and April 27, Strategy sold around 4 million shares of MSTR, netting about $1.4 billion. Additionally, over 435,000 shares of STRK were sold, amounting to $37.5 million. It’s important to note that only $128.7 million worth of MSTR shares remain available for future issuance under the existing programme. This acquisition follows closely on the heels of a prior purchase where Strategy secured 6,556 BTC for approximately $555 million, emphasising its aggressive strategy to enlarge its Bitcoin portfolio.
