Bitcoin investment giant Strategy, formerly known as MicroStrategy, has once again expanded its substantial digital asset treasury. According to a recent 8-K filing with the U.S. Securities and Exchange Commission (SEC) on Monday, the company acquired an additional 487 Bitcoins (BTC) last week. This significant purchase, totaling approximately $49.9 million, was made at an average price of $102,557 per BTC, marking Strategy’s largest acquisition in nearly six weeks. The funding for this latest expansion primarily stemmed from the successful sales of its perpetual preferred stocks, including Strike (STRK), Strife (STRF), Stride (STRD), and Stretch (STRC).
Michael Saylor, Co-founder and Executive Chairman of Strategy, proudly announced the company’s current cumulative Bitcoin holdings. Strategy now possesses an impressive 641,692 BTC, valued at approximately $68 billion. Since initiating its pioneering Bitcoin acquisition strategy in 2020, Strategy has invested a cumulative sum of around $47.5 billion. With an average acquisition cost of $74,079 per Bitcoin, the firm currently enjoys a substantial unrealized profit of $20.5 billion on its digital asset portfolio.
This latest acquisition is integral to Strategy’s overarching and ambitious ’42/42′ fundraising initiative. This strategic plan aims to raise a staggering $84 billion by 2027 through a combination of stock issuance and convertible bonds, specifically to finance further Bitcoin purchases. The four perpetual preferred stocks—STRK, STRC, STRF, and STRD—have seen significant issuances, raising $21 billion, $4.2 billion, $2.1 billion, and $4.2 billion respectively. Further demonstrating its global reach and commitment to expanding its Bitcoin arsenal, Strategy also revealed last week its intention to launch a Euro-denominated perpetual preferred stock, STRE, targeting a fundraising goal of €715 million.
While Strategy continues to lead the charge in corporate Bitcoin adoption, the broader landscape of public companies holding BTC presents a nuanced picture. According to data from Bitcoin Treasuries, 194 publicly listed companies have now embraced a Bitcoin reserve strategy. However, despite this growing trend, the stock performance of many of these ‘hodler’ companies has been less than stellar. Numerous firms have seen their share prices significantly decline from their summer peaks. Strategy itself has experienced a notable downturn, with its stock price falling 47% from its year-to-date high, highlighting the volatile nature of both cryptocurrency markets and the companies deeply invested in them.
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