Strategy MSTR Buys $2.54B Bitcoin
Strategy MSTR Buys $2.54B Bitcoin
Strategy (MSTR) has made a significant investment in Bitcoin, purchasing $2.54 billion worth of the cryptocurrency, bringing its total holdings to 815,061 BTC. This move surpasses BlackRock's holdings, making Strategy the largest publicly traded holder of Bitcoin.
Bitcoin Accumulation Strategy
Strategy's Bitcoin accumulation strategy, led by Executive Chairman Michael Saylor, has been ongoing since 2020. The company has spent roughly $61.56 billion accumulating Bitcoin at an average cost basis of $75,527 per coin. This latest purchase marks the company's third-largest Bitcoin buy, with an average price of $74,395 per Bitcoin.
Bitcoin Holdings and Market Impact
Strategy's Bitcoin holdings now represent more than 3.8% of the cryptocurrency's fixed supply of 21 million coins. This significant investment has led to Strategy surpassing BlackRock's Bitcoin holdings, with 815,061 BTC compared to BlackRock's 802,823 BTC. The company's position sits close to its aggregate purchase price, leaving the holdings near break-even after recent market volatility.
Financing the Purchase
The purchase was financed through a combination of equity issuance and preferred stock sales, with Strategy raising about $366 million through the sale of common shares and approximately $2.18 billion through its perpetual preferred stock offering known as STRC.
Key Takeaways
- Strategy (MSTR) has purchased $2.54 billion worth of Bitcoin, bringing its total holdings to 815,061 BTC.
- The company has spent roughly $61.56 billion accumulating Bitcoin at an average cost basis of $75,527 per coin.
- Strategy's Bitcoin holdings now represent more than 3.8% of the cryptocurrency's fixed supply of 21 million coins.
- The company has surpassed BlackRock's Bitcoin holdings, with 815,061 BTC compared to BlackRock's 802,823 BTC.
Frequently Asked Questions
What is Strategy's Bitcoin accumulation strategy?
Strategy's Bitcoin accumulation strategy, led by Executive Chairman Michael Saylor, involves purchasing and holding Bitcoin as a long-term investment.
How does Strategy finance its Bitcoin purchases?
Strategy finances its Bitcoin purchases through a combination of equity issuance and preferred stock sales, including its perpetual preferred stock offering known as STRC.
