Strategy Buys $765M in Bitcoin as Corporate Investments Surge

Investment firm Strategy (formerly known as MicroStrategy) added to its cryptocurrency portfolio by purchasing an additional 7,390 bitcoins worth approximately $764.9 million. The average purchase price was $103,498 per bitcoin. The transaction took place between May 12 and May 18, as evidenced by a Report 8-K filed with the Securities and Exchange Commission (SEC) on May 19.

Strategy's total bitcoin holdings have now reached an impressive 576,230 BTC. Their market value exceeds $59 billion, and the average purchase price is $69,726 per bitcoin. This was reported by the company's co-founder and executive chairman, Michael Saylor. The company's total cost to acquire the cryptocurrency was about $40.2 billion, including commissions and additional expenses. An impressive figure-Strategy now owns more than 2.7% of the total bitcoin volume, which is limited to 21 million coins. At the same time, the company's unrealized gains have reached approximately $18.8 billion.

Financial mechanisms of cryptocurrency portfolio expansion

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. It also 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 complement 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.

Growing corporate interest in bitcoin

To date, more than 70 companies have implemented various bitcoin investment models. Cantor Fitzgerald, SoftBank, Bitfinex, and Tether recently announced the planned launch of a $3.6 billion bitcoin project, Twenty One Capital. Japanese investment firm Metaplanet, on May 18, also announced an increase in its holdings, acquiring another 1,004 BTC for $104.3 million. The company's bitcoin reserve now stands at 7,800 BTC.