Strategy has purchased an additional 1,895 bitcoin for $180 million, pushing its total holdings to 555,450 BTC.
Background
- Strategy, formerly known as MicroStrategy and led by Michael Saylor, disclosed in a recent SEC filing that it acquired 1,895 bitcoin between April 28 and May 4.
- The purchase was financed by stock sales, including 353,825 shares of common stock (MSTR) and 575,392 shares of preferred stock (STRK), which raised approximately $180.3 million.
- The BTC was acquired at an average price of $95,167 per coin.
- The MSTR stock sale was part of Strategy’s broader “21/21 Plan,” a program that has now been fully executed and terminated. It initially aimed to raise $42 billion through equity sales.
- The company recently launched a new “42/42 Plan” to raise another $42 billion — split equally between equity and debt — to continue expanding its BTC holdings.
Why should you pay attention?
- Strategy’s Bitcoin stash now totals 555,450 BTC, bought at an aggregate cost of $38.08 billion.
- At current market prices, those holdings are valued around $52.2 billion, implying over $14 billion in unrealized gains.
- This accumulation accounts for over 2.6% of Bitcoin’s total supply, reinforcing Strategy’s role as a major institutional force in the Bitcoin ecosystem.
- The move follows a challenging Q1 earnings report, where the firm posted a $4.2 billion net loss due to unrealized BTC losses under new fair value rules.
Who said what?
- The SEC filing confirmed that the purchase and sale programs are part of Strategy’s capital plans aimed at growing its Bitcoin portfolio.
Zooming out
- Strategy’s aggressive accumulation strategy reflects growing institutional interest in Bitcoin as a treasury asset.
- The firm continues to use equity and preferred stock instruments to fund its BTC purchases, an approach that some see as pioneering within the corporate finance space.
- With plans to raise an additional $42 billion, Strategy appears far from done, further cementing Bitcoin’s relevance within traditional financial frameworks.
- The firm's commitment comes at a time when major companies and even governments are assessing Bitcoin’s role in the global financial system.
