Key Points
- Strategy, previously MicroStrategy, has purchased an additional 130 Bitcoin (BTC) for $10.7 million.
- The firm’s total Bitcoin holdings now amount to 499,226 BTC, bought for over $33 billion.
The company Strategy, formerly known as MicroStrategy, has continued its aggressive Bitcoin acquisition strategy by purchasing an additional 130 Bitcoin (BTC) for a sum of $10.7 million.
This move brings the company’s total Bitcoin holdings to 499,226 BTC, which has been acquired for a total sum exceeding $33 billion. The average purchase price per Bitcoin is around $66,360.
Strategy’s Bitcoin Acquisition
On March 17, Strategy’s founder Michael Saylor announced that the company had purchased the additional Bitcoin at a cost of nearly $83,000 per BTC. This purchase has resulted in a Bitcoin yield of 6.9% year-to-date.
Despite the announcement, Strategy’s shares (STRK) experienced a 1% dip in pre-market trading, as per Nasdaq data.
Future Plans
This purchase comes on the heels of Strategy’s announcement of plans to raise additional capital for further Bitcoin purchases. This is in spite of the recent downturn in the market and macroeconomic uncertainty.
As per a filing with the U.S. Securities and Exchange Commission, Strategy plans to use the proceeds from the sale of its Class A strike preferred stock to fund general corporate operations, which may include additional Bitcoin purchases.
The sale of STRK shares is part of Strategy’s existing ATM equity program, which is a part of their “21/21” roadmap. This roadmap involves raising and investing $42 billion in Bitcoin, a plan championed by executive chairman Michael Saylor.
Additionally, Strategy has the option to buy back the total unbought allocation if the value of STRK declines 25% below its initial value at issuance.