Strategy Acquires 1,895 Bitcoins for $180.3M, Total Holdings Now 555,450

Strategy, the software company formerly known as MicroStrategy, has continued its aggressive acquisition of Bitcoin, purchasing 1,895 Bitcoins between April 28 and May 4. The company spent approximately $180.3 million on this acquisition, with each Bitcoin costing around $95,167. This latest purchase was disclosed in a form filed with the U.S. Securities and Exchange Commission (SEC).

With this acquisition, Strategy's total Bitcoin holdings now stand at 555,450 Bitcoins, purchased at a total cost of $38.08 billion. This makes Strategy the largest corporate owner of Bitcoin in the world, with an average purchase price of around $68,550 per Bitcoin.

The company's relentless pursuit of Bitcoin has been funded through various capital-raising initiatives. The latest Bitcoin purchases marked the end of its 2024 at-the-market common stock offering, an initial $21 billion program established last October. Strategy frequently sells equity, debt, and preferred stock to raise capital for its Bitcoin purchases.

Looking ahead, Strategy is preparing to raise an additional $21 billion to fund future Bitcoin acquisitions. The company has introduced a new plan called the “42/42 Plan,” which aims to secure a total of $84 billion of capital over the next two years. This new plan follows the “21/21 Plan” introduced six months ago, which had the goal of raising $21 billion through equity offerings and another $21 billion through fixed-income securities.

Strategy's aggressive Bitcoin acquisition strategy has been met with a positive response from analysts. The stock of Strategy has a consensus Strong Buy rating among analysts, based on 12 Buy and one Sell recommendations assigned in the last three months. The average price target for Strategy stock is $499.85, implying a potential 30.47% upside from current levels.