Strategy Acquires $180M in Bitcoin, Plans $84B Capital Raise

Strategy, a prominent Bitcoin treasury firm, recently acquired 1,895 Bitcoin worth $180 million, marking its second-smallest purchase of the year. This acquisition was part of a $21 billion at-the-money equity offering program announced in October. The firm now holds approximately 555,500 Bitcoin, valued at $52.4 billion based on current prices. This purchase was funded through the sale of $52 million in perpetual "STRK" preferred stock and $128.5 million in common shares.

Despite the completion of the equity offering program, Strategy has ambitious plans to continue expanding its Bitcoin holdings. During its first-quarter earnings call, the firm unveiled a similar equity offering program, aiming to sell another $21 billion in common shares. Additionally, Strategy plans to issue $21 billion in corporate debt, targeting a total of $84 billion in under three years.

Strategy's latest financial report disclosed a $5.9 billion loss for the first quarter, primarily due to a decrease in the value of its Bitcoin holdings. However, the firm's stock price has shown resilience, surging 29% over the past month as Bitcoin's value recovered to $94,000 from a low of $74,800.

Analysts from a prominent asset manager reiterated an "Outperform" rating for Strategy, highlighting the firm's ability to accelerate its Bitcoin acquisition plans despite market headwinds. They noted that Strategy serves as a Bitcoin proxy for institutional investors seeking exposure to the asset without using vehicles like exchange-traded funds.

Benchmark Senior Research Analyst also reiterated a "Buy" rating for Strategy, with a price target of $650 per share. He emphasized Strategy's rapid growth in its Bitcoin acquisition strategy and described the company's $84 billion capital-raising target as "audacious."