Strategy, formerly known as MicroStrategy, has expanded its Bitcoin holdings by purchasing an additional 4,980 BTC. This latest acquisition, valued at approximately $531.9 million, underscores the company’s aggressive strategy to accumulate Bitcoin as a core treasury reserve asset.
The purchase was executed at an average price of $106,801 per Bitcoin, increasing the company’s total holdings to 597,325 BTC. At current market values, this portfolio is worth more than $64 billion.
Funding Through Market Offerings
The acquisition was funded using capital raised through the company’s well-known at-the-market (ATM) equity program. This initiative includes the sale of common stock (MSTR) and newly issued preferred shares (STRK and STRF). These efforts are part of Strategy’s broader “42/42” financing strategy, aimed at raising $84 billion by 2027 to support ongoing Bitcoin purchases.
Long-Term Bitcoin Price Outlook
Michael Saylor, Executive Chairman of Strategy, recently spoke at the Prague Bitcoin Conference, where he projected that Bitcoin could reach $21 million within the next 21 years. This optimistic outlook helps explain the company’s urgency in accumulating as much Bitcoin as possible while the asset remains comparatively accessible.
Unrealized Gains and Market Position
The average purchase price across all of Strategy’s Bitcoin acquisitions stands at $70,982 per coin, resulting in over $21 billion in unrealized gains. According to data from BitcoinTreasuries.net, Strategy is the largest publicly traded corporate holder of Bitcoin. Its closest competitor, Bitcoin mining firm MARA Holdings, holds roughly one-tenth of Strategy’s total BTC.
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Growing Corporate Adoption
The number of companies holding Bitcoin on their balance sheets has grown significantly in recent years. Cryptocurrency is increasingly being adopted as a strategic reserve asset, with at least 140 public companies worldwide now including Bitcoin in their treasury management strategies.
Market Response
Following the announcement, Strategy’s stock (MSTR) saw a 2% increase in early trading on Monday. Year-to-date, the company’s shares have surged more than 35%, reflecting strong investor confidence in its Bitcoin-focused strategy.
Frequently Asked Questions
What is Strategy’s total Bitcoin holding?
Strategy now holds 597,325 Bitcoin, purchased at an average price of $70,982 per coin. The total value of its holdings exceeds $64 billion based on current market prices.
How does Strategy fund its Bitcoin purchases?
The company uses proceeds from its at-the-market (ATM) equity program, which includes sales of common and preferred stock. This approach is part of a long-term financing strategy aimed at continuous Bitcoin accumulation.
Why is Strategy buying so much Bitcoin?
The company’s leadership, including Executive Chairman Michael Saylor, believes Bitcoin has significant long-term appreciation potential, with price projections as high as $21 million per BTC in the next two decades.
How does Strategy’s Bitcoin reserve compare to other companies?
Strategy is the largest corporate holder of Bitcoin globally. The next largest public company, MARA Holdings, holds only about one-tenth of Strategy’s BTC total.
Are other companies adopting Bitcoin as a reserve asset?
Yes, corporate adoption is rising. At least 140 public companies now hold Bitcoin on their balance sheets as part of their treasury management policies.
What has been the market reaction to Strategy’s Bitcoin strategy?
Investors have responded positively. The company’s stock is up more than 35% year-to-date, indicating strong market support for its Bitcoin acquisition model.