Strategy Acquires 7,390 Bitcoins for $764.9M, Boosting Holdings to 576,230 BTC

Investment firm Strategy, formerly known as MicroStrategy, has significantly bolstered its cryptocurrency portfolio by acquiring an additional 7,390 bitcoins, valued at approximately $764.9 million. The purchase, which took place between May 12 and May 18, was executed at an average price of $103,498 per bitcoin. This acquisition was disclosed in a Report 8-K filed with the Securities and Exchange Commission (SEC) on May 19.

With this latest purchase, Strategy's total bitcoin holdings now stand at 576,230 BTC, with a market value exceeding $59 billion. The average purchase price per bitcoin for the company is $69,726. The total cost to acquire this cryptocurrency, including commissions and additional expenses, amounts to about $40.2 billion. This positions Strategy as one of the largest holders of bitcoin, owning more than 2.7% of the total bitcoin volume, which is capped at 21 million coins. The company's unrealized gains from these holdings are approximately $18.8 billion.

Strategy's recent acquisitions have been funded through the sale of its Class A common stock (MSTR) and fixed-rate preferred stock (STRK). Last week, the company sold 1,712,708 shares of MSTR, raising approximately $705.7 million. As of May 18, Strategy still has $18.98 billion worth of MSTR shares available for offering and sale under this program. Additionally, the company sold 621,555 shares of STRK for approximately $59.7 million, leaving a balance for future offerings of $20.79 billion.

The STRK and STRF preferred shares are part of Strategy's ambitious "42/42" plan, which aims to raise $84 billion in capital through equity and convertible bond offerings to buy bitcoin through 2027. The plan was originally called "21/21" and was for $42 billion, but its equity portion was recently exhausted, leading to an expansion of the program.

Corporate interest in bitcoin continues to surge, with more than 70 companies implementing various bitcoin investment models. Recently, Cantor Fitzgerald, SoftBank, Bitfinex, and Tether announced the planned launch of a $3.6 billion bitcoin project, Twenty One Capital. Additionally, Japanese investment firm Metaplanet announced an increase in its holdings, acquiring another 1,004 BTC for $104.3 million. This brings Metaplanet's bitcoin reserve to 7,800 BTC.