Strategy's Bitcoin Holdings Surpass 500,000 BTC, MSTR Stock Up 25%

Strategy, the company formerly known as MicroStrategy, has made significant strides in its Bitcoin holdings, surpassing 500,000 BTC and securing 2.4% of the total Bitcoin supply. This milestone was achieved following the firm's latest purchase of 6,911 BTC, valued at $584 million. The acquisition brought Strategy's total holdings to 506,137 BTC, worth approximately $43.9 billion. This amount is substantial, as it exceeds the 492,750 BTC that would be mined between now and March 25, 2028, just before the next halving event.

Strategy's aggressive approach to Bitcoin, initiated in 2020, has positioned its share, MSTR, as a significant beneficiary. Over the past five years, MSTR has seen a remarkable 2,115% gain, outperforming Bitcoin's 638% rally by a factor of 3.3. This performance is even more pronounced on a month-to-date basis, where MSTR is up nearly 25% compared to Bitcoin's 1% increase. Year-to-date, MSTR has risen by 12%, while Bitcoin has declined by 8%, further solidifying MSTR as a leading Bitcoin proxy.

The latest Bitcoin purchase by Strategy was funded through a recent stock sale, as indicated in an SEC filing. The firm utilized proceeds from the sale of both MSTR and STRK to acquire the additional 6,911 BTC. This move is part of Strategy's broader 21/21 plan, which aims to raise $42 billion in capital through stock issuance and debt financing for further Bitcoin purchases. According to analyst Ragnar, the firm still has $15 billion worth of debt issuance remaining under this plan, with an overall $39 billion in capital left to be raised.

Strategy's share price, MSTR, has shown volatility, oscillating between the 200-day moving average (DMA) and the 100-day DMA. The recent 41% rally over the past two weeks has pushed MSTR to the upper range of the 100-day DMA. Whether this momentum will lead to a breakout remains to be seen, but the firm's strategic investments in Bitcoin continue to drive significant gains for its shareholders.