Strategy Acquires $765 Million in Bitcoin, Total Holdings Reach 576,230 BTC

Strategy, formerly MicroStrategy, acquired 7,390 Bitcoin for $765 million, boosting its total holdings to 576,230 BTC. The company aims for $42 billion in Bitcoin purchases by 2027. However, it faces a class action lawsuit for allegedly misleading investors about its Bitcoin strategy. Meanwhile, corporate Bitcoin adoption continues to grow with over 70 firms reporting BTC exposure.

Strategy, the company formerly known as MicroStrategy, has made headlines again by purchasing an additional 7,390 Bitcoin. This recent acquisition, amounting to nearly $765 million, occurred between May 12 and May 18, as detailed in an SEC filing released on Monday. As a result, the firm now boasts a staggering total of 576,230 BTC in its reserves.

This significant purchase was financed through various stock offerings; specifically, the sale of 1.7 million shares of Class A common stock, raking in about $705.7 million, and 621,555 shares of Series A perpetual preferred stock for $59.7 million. Currently, Strategy’s holdings amount to more than $18.9 billion in MSTR and $20.7 billion in STRK shares that are approved for future issuance.

With a total investment of approximately $40.2 billion, Strategy’s Bitcoin assets amounts to over $59 billion, representing about 2.7% of Bitcoin’s maximum capacity of 21 million coins. The company has ambitious plans, aiming for $42 billion in Bitcoin purchases by 2027, encapsulated in its “42/42” capital strategy. Presently, Bitcoin is trading near $103,000, while shares of MSTR saw a decline of 2.3% in pre-market trading on Monday.

In a somewhat overshadowing development, Strategy has also disclosed a new class action lawsuit submitted on May 16. This lawsuit accuses the firm of misleading investors and not adequately disclosing potential risks associated with its Bitcoin strategy as well as emerging crypto accounting regulations. The company plans to push back against these allegations, though it admits there is some uncertainty about how the legal situation may pan out.

On a broader scale, Bitcoin adoption among corporate entities appears to be on the rise. Now, over 70 traditional firms report exposure to Bitcoin in their treasuries. Notable mentions include Metaplanet, Semler Scientific, and Tether-backed venture Twenty One, which has recently initiated a substantial $3.6 billion Bitcoin-centric project.