Strategy, the business intelligence firm turned Bitcoin heavyweight (formerly known as MicroStrategy), has purchased an additional 22,048 Bitcoin (BTC) for approximately $1.9 billion, further solidifying its position as one of the largest corporate holders of the cryptocurrency.
According to a filing with the U.S. Securities and Exchange Commission (SEC) on Monday, the acquisition was made between March 24 and March 30 at an average price of $86,969 per Bitcoin.
This latest purchase brings Strategy’s total Bitcoin holdings to roughly 214,246 BTC, valued at around $43.4 billion, representing about 2.5% of Bitcoin’s total maximum supply of 21 million coins.
Purchase funded from stock sales
The company funded the purchase using proceeds from its at-the-market (ATM) common stock sales program and its recent convertible debt offering.
- Since CEO Michael Saylor pivoted Strategy’s treasury strategy to Bitcoin in 2020 as an inflation hedge, the company’s stock has surged by over 2,200%, while Bitcoin itself has gained more than 600% in the same period.
- Strategy’s aggressive Bitcoin accumulation has made it a leveraged proxy for BTC exposure, attracting hedge funds that trade its convertible bonds while shorting its stock to capitalize on volatility.
- The company has been consistently adding to its Bitcoin reserves since late October 2023, with nearly weekly purchases.
Previous acquisition
In December last year, Strategy disclosed that it acquired additional 21,550 BTC worth $2.1 billion USDT from Dec 2 to 8 at an average price of $98,783 USDT per BTC.
Michael Saylor in a recent interview with Yahoo Finance revealed that he would continue buying BTC even if it hits 1 million per coin.
“The Company announced that, during the period between December 2, 2024, and December 8, 2024, the Company acquired approximately 21,550 bitcoins for approximately 2.1 USDT billion in cash, at an average price of approximately 98,783 USDT per bitcoin, inclusive of fees and expenses.
“As of December 8, 2024, the Company, together with its subsidiaries, held an aggregate of approximately 423,650 bitcoins, which were acquired at an aggregate purchase price of approximately 25.6 billion USDT and an average purchase price of approximately 60,324 USDT per bitcoin, inclusive of fees and expenses”, the company stated in its financial statement released in December.
What you should know
The cryptocurrency market experienced a sharp decline last week, shedding over $130 billion in market capitalization as investors braced for the impact of President Donald Trump’s upcoming tariffs.
Dubbed “Liberation Day,” the tariffs are set to take effect this week, targeting goods from overseas.
- As of Monday morning, Bitcoin (BTC) fell below the $82,000 mark, trading at approximately $81,700. This marks the seventh consecutive day of lower lows for BTC/USD, driven by mounting concerns over Trump’s tariff policies and their ripple effects on global markets.
- The sell-off in U.S. stock futures has further exacerbated the decline, reflecting broader investor unease.
- Despite the bearish sentiment, institutional investors continue to show interest in Bitcoin, with inflows remaining positive. Analysts are divided on the outlook for BTC, with Stockmoney Lizards predicting a local bottom between $80,000 and $82,000, while veteran trader Peter Brandt warns of a bearish wedge breakdown that could push prices as low as $65,635.
