Strategy Buys $75 Million in Bitcoin, Expands Holdings to 580,955 BTC

Strategy, the software company formerly known as MicroStrategy, has expanded its Bitcoin holdings with a recent purchase of $75 million worth of the cryptocurrency. The acquisition, made between May 26 and June 1, was conducted at an average price of $106,495 per Bitcoin. This latest buy brings Strategy's total Bitcoin reserve to 580,955 BTC, valued at over $60 billion. The company's average purchase price per Bitcoin stands at $70,023, with a total investment of approximately $40.7 billion, including fees and expenses. This positions Strategy as the largest corporate holder of Bitcoin, owning roughly 2.9% of the total 21 million supply.

Strategy's recent Bitcoin acquisition is its smallest since mid-March when the company purchased $10.7 million worth of Bitcoin. To finance the latest purchase, the Virginia-based software company sold $74 million worth of preferred stock through at-the-market equity offerings, utilizing the perpetual preferred share classes STRK and STRF. Despite facing a class action lawsuit alleging false and misleading statements about the profitability of its Bitcoin investments, Strategy continues to bolster its cryptocurrency holdings.

Bitcoin's price has seen a slight decline of 5.2% over the past week, according to available data. The cryptocurrency recently reached a historic high of $111,814 before experiencing a downturn due to bearish macroeconomic factors, including stalled trade talks. With Bitcoin currently trading just above $104,000, Strategy's unrealized gains have surpassed $20 billion. This significant increase in value underscores the potential benefits of Bitcoin as a corporate investment strategy.

Strategy's approach to Bitcoin investment has inspired other companies to follow suit. For instance, Nasdaq-listed healthcare technology firm Semler Scientific has accumulated a Bitcoin reserve of 4,264 BTC, valued at approximately $445 million based on current prices. This trend highlights the growing acceptance of Bitcoin as a valuable asset for corporations seeking to enhance shareholder value. As more companies adopt similar strategies, the role of Bitcoin in the corporate investment landscape is likely to continue evolving.