Strategy Acquires $10.7M in Bitcoin, Boosting Holdings to 2.4% of Total Supply

Strategy, the enterprise software company led by its co-founder and chairman Michael Saylor, has recently bolstered its Bitcoin holdings by acquiring 130 Bitcoin, valued at approximately $10.7 million. This purchase was executed at an average price of $82,981 per Bitcoin, as detailed in a filing with the US Securities and Exchange Commission. With this addition, Strategy's total Bitcoin holdings now stand at nearly half a million coins, valued at around $41.4 billion, representing approximately 2.4% of the total Bitcoin supply.

The latest acquisition was funded through the "STRK ATM" program, a new initiative launched by Strategy to raise up to $21 billion in fresh capital. This At-The-Market (ATM) offering allows the company to sell shares directly into the secondary trading market at prevailing prices over time, rather than through a traditional public offering. This approach is part of Strategy's long-term plan to raise $42 billion over the next three years to significantly expand its Bitcoin holdings, despite market fluctuations.

Strategy's aggressive Bitcoin acquisition strategy has been ongoing since late October, with the company utilizing various financial strategies to fund these purchases. Initially, Strategy relied on leveraging its balance sheet to acquire Bitcoin. However, the company has since shifted its focus to equity and share sales to finance these investments. The company's shares have surged significantly since Saylor began investing the company’s cash into Bitcoin as a hedge against inflation in 2020. Bitcoin itself has seen a substantial increase in value during the same period.

Despite the recent price fluctuations of Bitcoin, Strategy's Bitcoin yield stands at 6.9% year-to-date, though it still falls short of the firm’s target of 15% for 2025. The company's continued investment in Bitcoin reflects its confidence in the cryptocurrency's long-term potential and its belief that it will continue to appreciate in value. As Strategy continues to expand its Bitcoin holdings, it remains to be seen how this strategy will impact the company's financial performance and its position in the market.

Michael Saylor, co-founder of Strategy, has long advocated for Bitcoin as a strategic reserve asset. Last month, Saylor suggested that the U.S. could purchase up to 20% of Bitcoin’s total supply, potentially using the asset to eliminate the national debt. This advocacy underscores the company's commitment to Bitcoin as a key asset in its investment strategy.

Strategy continues to be the largest corporate Bitcoin holder, followed by other major players in the industry. The company's aggressive acquisition strategy has garnered attention from various investors, including hedge funds, which have been driving some of the demand for the convertible debt issued by Strategy in public offerings. These funds seek out Strategy for trades that incorporate buying the bonds and selling the shares short, essentially betting on the underlying stock’s volatility.

Strategy's latest Bitcoin purchase is part of a broader trend of companies and investors turning to cryptocurrencies as a store of value and a hedge against inflation. The company's continued investment in Bitcoin reflects its confidence in the cryptocurrency's long-term potential and its belief that it will continue to appreciate in value. As Strategy continues to expand its Bitcoin holdings, it remains to be seen how this strategy will impact the company's financial performance and its position in the market.